Industry officials have pointed out that the help available through a mortgage interest repayment scheme put into place by the government is limited, and those aged sixty or over will not benefit from the scheme at all. Improvements have recently been announced relating to the scheme, but officials have said that older homeowners in this age group will not benefit from the changes.

At present the government pays the mortgage interest on loans of up to £100,000. However, with the value of mortgages having rocketed over recent years, and the government is planning to raise this amount to £175,000 from April. In addition the turnaround times are to be looked at, and it is hoped that the current waiting period of thirty nine weeks will be reduced to thirteen weeks.

One industry official said: "By the time you get help from the benefit system it is quite likely that your lender has gone to court and you are being shuffled out the door. The reduction to 13 weeks should make it more possible for lenders to wear that amount of arrears and that should help people stay in their homes." Another official said: "The reform to support for mortgage interest is designed to provide the most assistance to those who have taken out relatively large mortgages and are most vulnerable to future changes in the labour market."

The increases will not apply to those aged over sixty who receive pension credit. The time limits on help will also be more limited, and those that are unemployed will lose assistance with their mortgage interest repayments after two years. One official said: "People claiming Jobseekers Allowance are expected to be actively seeking work as a requirement of receiving the benefit. It is reasonable to expect jobseekers to find work within two years."