November 12, 2009
SOUTH YORKSHIRE HOMEOWNERS TO GET HELP TO AVOID REPOSSESSION
HOMEOWNERS in Rotherham, Barnsley and Doncaster will be the focus of a campaign to make sure people know how to get free mortgage help and advice.
Wentworth MP and Housing Minister John Healey announced the move as he extended efforts to help struggling homeowners get a grip on their finances and make sure repossession remains the last resort.
He said: “With the risk of repossession staying high throughout next year, I am stepping up Government efforts so anyone facing mortgage worries has access to the practical, impartial help and advice they need to take control of their finances, which since April last year has helped over 300,000 families.
“So today I am extending our campaign so anyone with mortgage worries in 34 new repossession hotspots will be pointed to the comprehensive range of support on offer, helping more people to avoid losing their homes.
“We have also tightened the rules so repossession is always the last resort, and lenders have to consider all options to keep borrowers in their homes. Lenders must also inform councils if one of their residents faces court action so they can have access to the schemes we’ve put in place to help.”
Rotherham, Barnsley and Doncaster all make the list of areas in the next tier of repossession “hotspots”, areas considered at greater risk due to higher levels of unemployment and numbers of court orders for repossessions.
In addition, rules have been tightened so mortgage lenders must inform councils when repossession action is started against residents, so local councils can step in and offer advice and help for those most in need.
A new checklist has been introduced in the courts, so lenders must prove they have exhausted every possible option before taking repossession action.
And the Financial Services Authority plans to put in place tougher protections for homeowners, so they can expect minimum standards of tolerance and understanding from lenders if they go into mortgage arrears, and won’t face excessive and unfair charges as they try to make repayments.
The tougher rules will also mean lenders will have to consider if borrowers can benefit from the Government schemes available – including help with mortgage interest payments, the Homeowner Mortgage Support Scheme and the Mortgage Rescue Scheme.
A new central fast-track team means the most vulnerable families can be helped more quickly through the Mortgage Rescue Scheme, which is now available from all 326 councils in England, as well as over 70 housing association providers – three times more than when the scheme was first launched.
Later today, the Ministry of Justice and the Council of Mortgage Lenders will publish their latest figures on the numbers of repossessions. In August, the CML reported there were 11,400 repossessions in the second quarter of this year – 10 per cent lower than the previous quarter. Repossessions, arrears and negative equity are currently running at around half the rates at which they peaked in the early 1990s – when 75,000 households lost their homes in 1991 alone.
But with the risk of repossessions remaining high throughout next year, Mr Healey is stepping up support for struggling homeowners by extending the Government’s awareness campaign into 2010, highlighting free and impartial help and advice either online or over the phone. Homeowners can go to www.direct.gov.uk/mortgagehelp or call the National Debtline free on 0808 808 4000.