For the past six months the Chartered Institute of Housing (CIH) has worked closely with Government, its agencies, lenders, local authorities and housing providers to develop a detailed working model for a mortgage rescue package.

Commissioned by the Housing Corporation, the government agency charged with delivering the housing rescue package, the CIH mortgage rescue model has played a key role in informing the Government's decision to introduce a new scheme. It proposes a new national 'vehicle' for managing the funding and administration of any new rescue scheme.


CIH also believes a national approach to mortgage rescue would yield the following financial benefits: The scheme would be funded by a levy on mortgage lenders benefiting from repayment, which may otherwise have been written-off and housing associations and local authorities who do not have sufficient skills and financial resources to deliver mortgage rescue on the scale required would have access to a national expertise and funding.

Sarah Webb, Chief Executive, said: "We are delighted that government has decided to take forward ideas around mortgage rescue. There are thousands of home owners who are at risk of losing their homes through no fault of their own - it is absolutely right to help these people. What is important now is to get the model in place and get it up and running quickly. We also need to act to help eligible home owners who could miss out during any transition to a new approach."

(CD/JM)