The Mortgage Rescue Scheme has been criticised by the National Audit Office (NAO) for missing targets.
The Scheme was established by the Labour Government in late 2008 to help struggling homeowners in England facing repossession and allowed people to sell their property to a local authority or housing association but stay on as a tenant.
At the time, homeowners were struggling as higher interest rates had made monthly mortgage repayments rise.
According to the NAO, the Scheme has helped 2,600 households avoid having their homes repossessed, missing the target of 6,000.
Furthermore, the cost should have been in the region of £205 million but cost around £240 million.
Amyas Morse, head of the National Audit Office, comments: “There was more need than expected for more expensive support and less for the relatively low-cost rescue option. Spending more than expected and delivering less means that the department has not provided value for money.”