The Treasury Committee has announced it will undertake a short inquiry into mortgage arrears and access to mortgage finance.
According to the Treasury, the investigation will look specifically at households affected by the ongoing economic and banking crises ? those facing repossession or struggling with mortgage arrears.
It will look for evidence on the number of people struggling to stay on top of their mortgage repayments, the number of people who have had their properties repossessed and the treatment they have received from their mortgage lenders.
The inquiry will also look into the government’s flagship ?285 million homeowner support scheme, which had only helped two households in the first four months of its administration.
A spokesperson for the scheme said it could take up to five months to process a claim and that in many cases repossession had been avoided.
However, last month, housing minister Margaret Beckett said: “At this early stage, we are seeing the scheme have a positive impact on vulnerable home owners facing repossession.”
As the enquiry was announced a leading economist warned that repossessions would not peak until 2011, Ian Stephenson, chief economist at High Frequency Economics said that 120,000 properties could be repossessed in 2011 as unemployment rises. Government statistics showed that unemployment now stands at 2.26m, up 223,000 in the three months to April 2009.