|
Housing Minister John Healey has today
extended free advice for families facing the
threat of repossession, with an extra £4m to
ensure this vital lifeline continues into the
New Year.
The Government funding will go to debt
advice agencies, as well as 80 court desks
across the country.
The services have proved their worth: 36,000
cases have been seen by the court desks over
the past year, and more than 100,000 households
have benefited from free advice on managing
their debts from charities and councils.
Services offering free advice and
representation in court have helped stop
repossession in four out of five cases making
use of their service, supported by extra
Government funding to ensure help is available
in county courts across England.
The decision comes as pressures on
repossessions are forecast to continue
throughout 2010. The Government has decided to
act ahead of the repossession risk next year by
extending the help available.
Over the last year, over 330,000 homeowners
have received help and advice with their
mortgages.
New figures from the Financial Services
Authority published today show there were
13,987 repossessions between July and September
- five per cent less than at the beginning of
the year.
Repossessions are running at half the rate of
the last recession, and the Council of Mortgage
Lenders has reduced their repossession
forecasts for this year by well over a third -
from 75,000 to 48,000.
Mr Healey said: "To ensure lenders follow the
tough rules put in place, a new checklist was
introduced earlier this year so lenders must
prove they have exhausted every possible option
before seeking court action.
"But I also remain concerned that a
disproportionate number of repossession cases
come from specialist lenders. That is why it's
vital that the FSA's tougher regulations for
lenders are introduced as quickly as possible -
to ensure all borrowers are treated with the
same tolerance and understanding, regardless of
who their lender is. These measures combined
will ensure that in all cases, repossession
remains the last resort."
|