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Funding to help homeowners
08/12/2008
The Scottish Government is to provide an extra £5 million this year for its existing Mortgage to Rent (MTR) scheme which helps families at risk of losing their home.
Communities Minister Stewart Maxwell said the additional funding was in response to increased demand, and brings total investment in the scheme this year to £15 million.
Mr Maxwell also drew attention to practical measures taken by the Scottish Government to help families facing difficulties as a result of the current recession.
- Bringing forward £100 million of affordable housing investment into this year and next
- Early in the new year we will introduce a Mortgage to Shared Equity Scheme
- £25 million to kick-start a new generation of council house building
- An additional £10 million for the Central Heating Programme this year to deliver record numbers of systems for private homes
- £3 million to provide legal advice and representation for people facing repossession and other problems, such as debt
- £380,000 pounds to fund an awareness raising campaign for the National Debtline to encourage people to take early action to address debt problems
Speaking ahead of a credit crunch debate taking place today at Glasgow University, Mr Maxwell said:
"The present economic downturn is causing real difficulties for some families who face the prospect of losing their homes. The threat of homelessness for some homeowners has put more pressure on the Scottish Government's Mortgage to Rent Scheme.
"We recognise, and have responded to the increased demand for Mortgage to Rent by taking decisive action to invest more money to boost the scheme.
"The increase in the budget for Mortgage to Rent to 15 million pounds this year shows that the Scottish Government is determined to take practical action to help families facing financial difficulties.
"The present economic climate has left more people wanting to access the scheme, and that's why we are increasing the budget by 50 per cent.
"We will continue to take whatever steps we can to help communities across Scotland deal with the rigours of the current recession."
The Mortgage to Rent scheme helps people who are in danger of having their homes repossessed to stay in their home as tenants of a social landlord.
The property is sold to a landlord and then rented back to the household. The scheme provides government subsidies to the landlord to enable a social rent to be charged and for the property to be brought up to a decent standard of repair.