Struggling homeowners to be helped by government
February 28, 2009
According to a recent report the government is to offer help to struggling homeowners who have properties worth up to £400,000 in value.
The help is to be offered to homeowners that fall behind on their repayments and is intended to help them to avoid repossession. The nature of the rescue package that has been launched by the government means that it will most likely help middle class homeowners who suddenly find their income cut off as a result of losing their jobs.
The Prime Minister, Gordon Brown, first announced the Homeowner Mortgage Support Scheme back in November. As part of the scheme qualifying homeowners will be able to apply for a partial mortgage holiday, and payments will usually be deferred for two years. Another scheme is being launched to help low income homeowners, and this is known as the Mortgage Rescue Scheme.
The government has taken action after the Council of Mortgage Lenders predicted that repossessions could rise to 75,000 this year and some industry groups have predicted that the number could be even higher. However, some officials have expressed concern about the scheme, stating that in many cases homeowners won’t be able to take advantage of it because they are already in negative equity.
Vince Cable from the Liberal Democrats said recently: “Repossession is a tragedy for families because it involves, usually, not just the loss of a job but the loss of a home at the same time. It’s a double tragedy.”
Another industry official said: “The mortgage rescue scheme will save thousands of vulnerable families from the nightmare of having their homes repossessed and give them the long-term stability they need.”
- Thirty percent rise in mortgage arrears A recent report has shown that although the base interest rate has fallen to its lowest level in history, at just 0.5 percent, the level of mortgage arrears in the UK has soared by 30
- Speculation over mortgage support scheme rises According to a recent report there is rising speculation over a proposed government mortgage support scheme, with uncertainty over which lenders are prepared to support the scheme and when the scheme will actually go ahead.
- PM accused of raising hopes over mortgages In a recent attack the Conservative Party has accused the Prime Minister, Gordon Brown, of raising the hopes of consumers with regards to mortgage assistance. The accusation comes following a scheme that the Labour government
- One in ten struggling to pay their mortgage Recent reports have suggested that around 10 percent of homeowners are struggling to make repayments on their mortgages. Industry officials have stated that one in ten homeowners is finding it difficult to make mortgage repayments.
- What sort of mortgage help is the government proposing? The mortgage meltdown that has occurred over recent months has not only affected the business of lenders, but has also left many homeowners in dire straits, particularly those that are due to come off cheap
Comments
One Response to “Struggling homeowners to be helped by government”
Got something to say?
[...] mortgage support scheme was set to be launched at the start of this year, but it was postponed until April because the government was apparently still in talks with lenders [...]