Scottish Labour Leader Anas Sarwar has launched plans for a revamped ‘mortgage rescue scheme’ which would see the Scottish Government take equity in people’s homes.
Under the scheme the Government would take equity in a struggling homeowners property which they would then be able to pay back at a later date.
The scheme would also give homeowners the option to sell their property to a Registered Social Landlords.
At present the Scottish Government’s Home Owner’s Support Fund is in place to offer these options to people who are facing repossession.
It does this either by helping people to sell their home to the Registered Social Landlord or by the Government taking a temporary equity share in people’s homes to help reduce payments.
However, both schemes are underused and under-resourced. Since 2016/17 only 181 people (41%) have successfully applied to the Mortgage to Rent Scheme.
Since 2010/11 there have only been 33 successful applications to the Mortgage to Shared Equity Scheme and none since 2015/16.
Sarwar said there is £20m currently allocated to the scheme, but Labour has said that £50m should be allocated next year.
Full details on Labour’s proposals can be found here.
