Scottish Labour has taken a stand, pressing the Scottish Government to bolster measures shielding individuals from potential home loss, as apprehension mounts over the substantial number of households falling behind on mortgage payments.
UK Finance figures indicate that around 6,900 households across Scotland are already grappling with arrears, while many more teeter on the edge of similar financial difficulties.
As such the Labour party has called on the SNP-led Government to take firm action and extend concrete support to homeowners grappling with the challenge of meeting payment obligations.
To address the growing concern, Scottish Labour has proposed a two-pronged approach. Firstly, it urges the Government to reintroduce a revitalised mortgage-to-equity scheme.
This would involve modifying the qualifying house price threshold to encompass a greater number of residences, and reducing the equity requirement for individuals to access assistance.
Additionally, the party advocates for enhanced resources to be allocated to the Home Owner Support scheme. The objective is to streamline application processing, ensuring that applicants receive responses within a two-month timeframe.
Mark Griffin, Scottish Labour’s housing spokesman, stressed the critical importance of establishing a robust safety net as Scots confront escalating living costs and rising mortgage rates.
Griffin said: “The SNP has had months now to adopt Scottish Labour’s plans and relaunch the support available to people facing repossession, but as usual they are more focused on spin than providing real solutions.”
He added: “Right now, housing support is languishing under a leadership that is out of touch and out of ideas.
“Only Scottish Labour is taking the threat facing Scottish homeowners seriously and working within the UK to ensure that this mortgage bombshell has as little impact as possible.”
In response, a spokesperson for Housing Minister Paul McLennan said: “It’s Labour who need to acknowledge that this mortgage crisis is of Westminster’s making – with a cost-of-living crisis and a deeply damaging Brexit which they support.”
The spokesperson continued: “Labour must either accept responsibility as a UK party to come up with Westminster based solutions, or accept that with independence Scotland could not only help people with this immediate crisis, but make our country fairer and more prosperous to prevent such crises happening in the future.”
