SNP’s ‘broken promise’ leaves Scots facing a mortgage crisis
Labour plea over support scheme
SCOTS are facing a mortgage crisis this winter as the SNP breaks its promise to support debt-laden homeowners to make ends meet, opposition parties claim.
Analysis from Scottish Labour shows around 6,900 households could already be in arrears owing to a cost of living emergency and soaring rates of inflation.
The party is also warning that thousands more could fall behind on payments due to inadequate support from the Scottish Government.
A homeowner can face repossession and legal action if they fall behind on monthly payments or reach the end of an interest-only deal and are unable to clear the debt.
In Scotland, however, homeowners at risk of losing their homes are meant to benefit from additional support under the ‘mortgage to shared equity scheme’ which allows the Scoting
‘More focused on spin than real solutions’
tish Government to buy a stake of up to 30 per cent in a property so borrowers can reduce their loan while maintaining some ownership.
Scottish Labour warned last night that not a single Scot has benefited from the scheme since 2016.
Calling for more support for mortgage holders, the party’s housing spokesman, Mark Griffin, said: ‘As Scots continue to struggle with the cost of living crisis and rising mortgage rates, it is absolutely vital that we have a strong safety net in place to prevent people losing their homes.
‘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.
‘Housing support is languish
under a leadership that is out of touch and out of ideas.’
According to the Scottish Household Survey, 740,000 owner occupiers in Scotland have a mortgage, about 8.41 per cent of UK homeowner mortgaged properties.
The UK Finance trade group reports there are 81,900 homeowners with mortgages in arrears across the UK. If it is presumed that a proportionate share are based in Scotland, it would indicate that 6,888 could be in arrears.
Meanwhile, other statistics show the Scottish Government has not recorded any mortgage to shared equity scheme completions in the period between 2016 to 2023, meaning no additional help has been secured for those struggling in the past seven years.
Scottish Labour’s plan includes relaunching a revamped scheme by amending the eligible house price thresholds so it is not only the lowest value homes that qualify. Reducing the size of the equity that people need is also part of its plan.
A spokesman for the SNP’s Housing Minister Paul McLellan 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.’