Question reference: S6W-10243
- Asked by: Mark Griffin, MSP for Central Scotland, Scottish Labour
- Date lodged: 10 August 2022 Registered interest
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Current status: Answered by Shona Robison on 7 September 2022
Question
To ask the Scottish Government how many (a) enquiries about and (b) applications for the Home Owners' Support Fund it has received in each of the last six years, broken down by the (i) Mortgage to Rent and (ii) Mortgage to Shared Equity schemes, and, of those applications that were received, how many were (A) successful and (B) ineligible.
Answer
The Scottish Government does not collect information on enquiries relating to the Home Owners Support Fund (HOSF). The Mortgage to Rent (MTR) and Mortgage to Shared Equity (MTSE) schemes are delivered as part of the HOSF programme. Each application is assessed on a case by case basis to determine which scheme best meets the applicant’s needs. During the last six years there have been no cases eligible for MTSE, due to the circumstances of applicants not meeting the eligibility criteria, in particular applicants with complex debts.
The following table shows the number of applications received during each of the last six years, the number of applications successfully completed and the number of cases closed due to ineligibility. Mortgage to Rent is a voluntary scheme and participation from applicants, lenders, trustees and social landlords is required for a case to succeed.
Mortgage to Rent Applications* | |||
Year | Received | Successful | Ineligible |
2016-17 | 113 | 65 | 20 |
2017-18 | 91 | 39 | 17 |
2018-19 | 106 | 32 | 30 |
2019-20 | 79 | 28 | 16 |
2020-21 | 20 | 8 | 7 |
2021-22 | 36 | 9 | 10 |
*Figures for received, successful and ineligible do not necessarily refer to the same cases.
We have received significantly fewer applications during the last two financial years. Regulations were introduced by the Scottish Government that protected homeowners in financial difficulty from repossession at the height of the pandemic. n addition, the Financial Conduct Authority (FCA) and mortgage lenders also put in place temporary measures to assist homeowners facing difficulties in managing their mortgage repayments. From March 2020 to March 2021, mortgage lenders offered payment deferrals of up to six months and whilst those temporary measures have now expired, the FCA continues to work with lenders to help improve and strengthen arrears management and mortgage lenders must demonstrate that they have done everything required to make repossession a matter of last resort.