Homeowner Mortgage Support Scheme

Commenting on the clarification of the details of the Homeowner Mortgage Support Scheme by the Treasury, Louise Cuming, head of mortgages at moneysupermarket.com, said:"After a week of whispers, finally the Government has confirmed what we all thought - that this scheme is virtually worthless and will benefit very, very few homeowners who may be struggling. The list of criteria that must be fulfilled before borrowers are even considered means that few will qualify and even fewer will actually be granted assistance due to the fact it is voluntary on behalf of the lenders, who have only signed up ‘in principle'.

"The rules state that borrowers must have received financial advice from a party other than their lender, which will be taken into consideration when deciding if they qualify for assistance. But who will this advice come from? If charitable associations such as the Citizen's Advice Bureau are expected to step in and help with the delivery of this scheme, it's a bit of a slap in the face to the taxpayer who has already bailed out banks to the tune of billions, and exposes the fact that some lenders have no debt advice capability. Packing consumers off to a third party does not help.

"With so many of the Government's big ideas proving to be spin over substance, it's disappointing that the core issue of how to get lenders lending again has been tackled."