Cable: UK faces repossession timebomb
The UK is sitting on a "repossession timebomb" and the government needs to take action now, according to Liberal Democrat Treasury spokesperson, Vince Cable.
Mr Cable told Myfinances the government could do more to solve both the housing crisis and the recession.
"There is a repossession timebomb - repossessions are being stored up, because at the moment banks are showing forbearance, which is a good thing, the government schemes are only temporary, and there is a possibility of interest rates rising next year - all these things will lead to a big upsurge," Mr Cable said.
The government's mortgage rescue scheme has only helped six people and could be improved to help more, Mr Cable added.
"The concept is a very good one, I support the principle, but the problem is they will only accept people who are regarded by local councils as homeless. And the problem is that the local councils treat as potentially homeless, people who have fallen into arrears on their mortgages and rent.
"So the people this is designed to help are already in trouble - the scheme could be much more flexible," he said.
Read the full interview with Vince Cable here
The government has promised to fast-track the most urgent cases.
The scheme offers homeowners struggling to keep up with their repayments help in two ways: Government Mortgage to Rent, in which the local authorities buy the homeowner's property and renting it back to them, or the Shared Equity option, where part of the home is bought by the local authority or housing association which reduces their monthly mortgage payments.
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