The Homeowners Mortgage Support scheme, introduced by the last Government, has not had to make any payments out of the public purse after attracting only a handful of borrowers.
The ‘breathing space’ scheme was a flagship policy of Gordon Brown’s government, launched in the spring of 2009 with a fanfare across the media.
Official estimates initially suggested it would help 9,000 borrowers, but the Government later upgraded the forecast to ‘tens of thousands’.
Six months after launch, the Government quietly admitted it had helped just 15 people.
It was designed to help households where no one was in work to remain in their homes. It allowed lenders to defer 70% of a borrower’s monthly interest payments for up to two years by rolling them up.
The Government guaranteed the lender against 80% of any loss incurred on the rolled-up interest payments if the borrower defaulted.
Housing minister Grant Shapps was asked in the Commons how many households had received financial support under the scheme and what was the cost to the public purse in supporting property owners.
Shapps replied that the scheme closed to new registrations last April, with only 62 registrations.
He said: “To date, no payments have been made and no expenditure undertaken in relation to the Government guarantee.”
Lenders were lukewarm about the scheme. Those who supported it included HBOS, Lloyds and Northern Rock, but others, including Nationwide, Santander and Barclays, snubbed it.
Critics pointed out that rolling up deferred interest payments could cost the borrower an extra 10%, and that a property might eventually have to be sold anyway because the borrowers defaulted.
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Santa was very cross. It was Christmas Eve and nothing was going right. The elves were complaining about not getting paid overtime. The reindeer had been drinking all afternoon and the sleigh was broken. Santa was furious. ‘I can’t believe it!’ he yells. ‘I’ve got to deliver millions of presents all over the world in just a few hours – all of my reindeer are drunk, the elves are on strike and I don’t even have a Christmas tree! I sent that stupid little angel to find one hours ago! What am I going to do?’ Just then, the little angel opens the front door and steps in from the snowy night, dragging a Christmas tree. ‘Oi fatty!’ she says. ‘Where d’you want me to stick this?’ And thus the tradition of angels atop the Christmas trees came to pass.
Portland Agent: 'Mr Shapps, what was the cost to the public purse in paying salaries to useless public servants in non-jobs working in the scheme? Millions?'
Why are you asking Mr. Shapps? You should ask Gordon Brown - his government created the scheme.
Reminds me of the Scammy SEQUENCE my choice home buy....."My Choice Home Scam" i recall their staff used to call iy
Mary
If the Borrowers find Grant Shapps brain ask them to return it would you - I doubt they have found much use for it anyway as he certainly never has!!!
Merry Xmas one and all - and especially you Rosalind
I'm not surprised, you know. Borrowers are tiny people who live behind the skirting board and make use of ordinary household items that are "lost" around the house. In normal circumstances there would be absolutely no need for them to purchase a house as they conduct a successful symbiotic relationship with full sized people who own full sized houses. That 62 of them have been attracted to the Government scheme is something of a minor miracle. For further information please see the fly on the wall documentary being broadcast on the BBC over the festive season. Merry Christmas!
Mr Shapps, what was the cost to the public purse in paying salaries to useless public servants in non-jobs working in the scheme? Millions?
Happy for the 15 people though.
Merry Xmas!
Happy Christmas one and all..
HO HO HO
Politicians & civil servants = arseholes
Merry Christmas though.