Improvements made to state help for homeowners
February 4, 2009
According to recent reports a number of improvements have been made with regards to state help that is made available to homeowners that are unable to pay their mortgages after losing their jobs.
With an increase in the levels of unemployment and with further increases expected over the course of the year, it has become more important to ensure that homeowners that find themselves in this situation receive their assistance more quickly, which is one of the things that will be addressed through the improvements made to the process.
The improvements aim to ensure that state benefits are paid more quickly and are made available to more people who find that they cannot pay their mortgage because they have lost their job through redundancy.
Previously only people with mortgages up to £100,000 qualified for the assistance, but this has now been doubled to £200,000. Also, the waiting period to qualify for this assistance has been reduced to just thirteen weeks, which is a reduction of two thirds in terms of time.
The Works and Pensions Secretary stated: “We have changed the rules to make sure even more people can get help with their mortgage payments if they lose their job. We have brought in changes as quickly as possible so people don’t have to wait too long for this support. Every time someone loses their job it is a personal tragedy.”
An official from the housing charity Shelter said that the changes could benefit many people that find themselves in this situation, stating: “By the time people have waited nine months, most mortgage companies will have started repossession proceedings. It does remove the immediate concerns that people have starting the New Year that if they lose their jobs that will automatically mean they are going to lose their homes.”
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