A FAMILY who sought financial help say they’re back to square one after they failed to qualify for a much-lauded rescue package.

Andrew Phillips from Portland understood he ‘ticked all the boxes’ for the government’s Mortgage Rescue Scheme, designed to stop vulnerable people being thrown out of their homes.

But because his mortgage repayments have reduced – due to falling interest rates – he no longer qualifies.

Mr Phillips believes this is wrong because his circumstances could change again soon.

His comments come as it was revealed the Mortgage Rescue Scheme has helped just one family across the whole of the UK.

A government spokesman said councils were considering applications from more than 450 families and stressed it had always been expected to take more than three months for the scheme to get off the ground.

But Lib Dem Prospective Parliamentary Candidate for South Dorset Ros Kayes said the figures were ‘staggering’ and that rescue packages should be offered quickly.

Under the scheme, introduced in January after being announced last autumn, homeowners struggling with repayments sell part or all of their property to a social landlord and rent it back.

Mr Phillips, 43, fell behind with repayments on his Woolcombe Road home as he juggled work as a MoD engineer with caring for disabled wife Katherine, 32, and their two children.

They were ordered to leave their home by the end of January but thanks to support from the Citizens Advice Bureau and Weymouth and Portland Borough Council they were put forward for the new scheme.

They were allowed to stay in their home while their application was processed.

Mr Phillips said: “I understand there were some problems with a housing association buying our home so another company took it on.

“In that time the interest rates have fallen and I am paying far less on the mortgage so when we submitted the forms again we were told we no longer qualified.

“In six months’ time our situation may be different. I could be forced to give up work to spend more time caring for my wife.

“We were told we ticked all the boxes for this scheme back in January.

“It’s like seeing a light at the end of the tunnel and then someone switching off that light.”

South Dorset MP Jim Knight, who has been approached by the family for help, said he understood there were no guarantees at the beginning they would qualify.

He said: “I can’t say too much about individual cases but I know that this is one of a range of schemes that are available.”

Housing advice manager at Weymouth and Portland Borough Council Sharon Ball said: “If for any reason an application for the scheme is unsuccessful, homeowners are always referred back to the council for further advice.

“The scheme does not provide a solution for everyone facing repossession but it will be a valuable safety net for households over the next two years.”