Britain is facing a repossessions time bomb, the Lib Dem treasury spokesman Vince Cable warned yesterday, as it emerged just six families have benefitted from the Government’s Mortgage Rescue Scheme.

When the scheme was launched at the beginning of this year at a cost of £280 million the government said it would help 6,000 struggling homeowners within two years.

However, as the recession continues to bite, more and more homeowners are struggling to meet their mortgage repayments and risk losing their homes.

Mr Cable said that many households were facing a “ticking time bomb” which would end in repossession.

“The numbers of repossessions are likely to soar in the next two years because of rising unemployment. Temporary Government schemes are deferring the problem, not solving it,” he warned. “If interest rates start to rise next year, the problem will become even more severe.”

Figures from the Council of Mortgage Lenders show that almost 1,000 homeowners are being evicted every week. There were around 12,800 repossessions in the first quarter of this year, a rise of more than 50% from the 8,500 this time last year.

Housing Minister John Healey said: “We have put in place help for home owners struggling with their mortgage at every step of the way.”

Under the Mortgage Rescue Scheme homeowners can apply for an equity loan to reduce their mortgage, or sell their home to a housing association and remain as tenants. A separate government scheme allows homeowners who have been made redundant to reduce their monthly mortgage payments for up to two years.

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