Help for those facing home repossessions

Grovelawn Financial News 22/10/2008

← London Inter Bank Rate falls again | News For October 2008 | Home loan approvals rise slightly →

Government announces new measures

The government has announced new measures to help homeowners who are suffering difficulties with their mortgage repayments and face possible repossession.

The measures include building on the idea of rent back schemes that allow people to remain in their own homes but through a rental agreement after selling their property to a social landlord. This scheme has caused been the subject of criticism in the past when tenants were forced to sell their property at a greatly reduced price or were unable to rent it back for any longer than six months, were evicted after a short period or were unable to pay greatly enhanced rental amounts.

The level of repossessions is expected to rise during 2008/9, currently almost 19,000 people have lost their homes during the first three months of 2008, 48% more than during the same period last year.

Lenders who do decide to proceed with a court action against a homeowner will need to prove that they have tried to discuss and agree any possible alternatives with the borrower and will need to provide details of what they have done to the courts.

Guidance will be given to local authorities on housing benefit eligibility and their will be an expansion of free legal representation in the county courts for anyone facing repossession as well as free debt advice. A spokeswoman for the British Bankers Association said: “The banks will work with the courts”.

← London Inter Bank Rate falls again | News For October 2008 | Home loan approvals rise slightly →

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Your property may be repossessed if you do not keep up repayments on your mortgage.

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