Only a small number of households will be helped by the Treasury’s homeowner mortgage support scheme, says a report by the Centre for Policy Studies, a free market think-tank. The scheme encourages lenders to defer interest payments for up to two years in return for a partial government guarantee.

An estimated 100,000 homeowners could be saved from losing their homes if judges presiding over repossession cases used a legal ruling that allows borrowers to spread repayments over their remaining mortgage term, rather than forcing them to pay up in a couple of years, the group says.

Financial Times, The Times