In January, National Debtline can see the number of calls they receive increase by more than a third. In his message to homeowners, Mr Healey said National Debtline and other advice agencies stand ready to take homeowners' calls and provide free, impartial advice.
Over the next few weeks, the Government is teaming up with Citizens Advice to run a series of local events where families can get free face-to-face and impartial information. These will take place in 56 repossession "hotspot" areas - identified as being at greater risk due to having higher levels of unemployment and repossession court orders.
Mr Healey has also announced that he is extending free advice available for homeowners with an extra £4million to local advice agencies like Shelter, to ensure this vital lifeline continues into the New Year.
Funding will also go to debt advice agencies and 80 court desks across the country. Even at the eleventh hour when families are in court facing repossession, this free advice and representation in court is helping stop repossession in four out of five cases.
This is part of a comprehensive range of Government support, including help with mortgage interest payments, tougher regulations on lenders, and special Government schemes for the most vulnerable households.
Over the last year, over 330,000 homeowners have received help and advice with their mortgages.
Examples include:
* Laura Pollock from Wirral, who was able to stay in her home thanks to the Mortgage Rescue Scheme. Laura went into mortgage arrears after going into teacher training and separating from her husband - but even as the mortgage company's final letter arrived, Wirral Council put her in touch with the Plus Dane group, the local housing association, who were able to buy Laura's home enabling her to continue living there as a tenant.
* Mr and Mrs Lunn of Droitwich - when Mr Lunn was made redundant in 2008, he tried to claim on his Mortgage Protection insurance, only to be told he was ineligible because he had been working for an agency. When the mortgage company decided to take repossession action, the family approached Wychavon District Council for advice. The council, working with the West Mercia Housing Group, agreed that the Mortgage Rescue Scheme was a good option for the family. West Mercia bought the property, and Mr and Mrs Lunn have been able to stay in their home as tenants.
* Mr and Mrs W in Gateshead, who faced repossession after failing to keep up their mortgage payments when Mr W was made redundant in January 2009. On hearing their case through the local court advice desk, Citizens Advice helped the family to apply for benefits, and approached the lender on their behalf to negotiate for the mortgage debt to be transferred to interest only. On returning to court in October, the repossession order was suspended and Mr and Mrs W have been able to keep their home.
* Richard in Tavistock, who faced repossession after losing his business. Through Shelter, his family were able to get financial assistance from West Devon Borough Council, before getting confirmation that they were eligible for help through the Support for Mortgage Interest scheme - help with their mortgage interest payments was also backdated, so they could afford to stay in their home.
Source
Sunday, February 28, 2010
Monday, February 15, 2010
Connells supports Government initiative to help homeowners
Connells Survey & Valuation (Connells) has signed an exclusive contract to provide property surveys for borrowers helped under the Communities and Local Government (CLG) Mortgage Rescue Fast Track Scheme.
The contract has been secured through Connells' existing partnership with property services provider, King Sturge.The Mortgage Rescue Scheme operates by bringing together local authorities, Registered Social Landlords (RSLs), lenders and debt advice agencies.
The scheme has two elements- shared equity - where the RSL provides an equity loan, enabling householders' mortgage payments to be reduced and Government mortgage to rent - where the RSL purchases the property and the householder pays rent to the RSL at a level they can afford.
Over the next two years, it aims to help thousands of households who are vulnerable to losing their homes through repossession.
Ross Bowen, managing director at Connells Survey & Valuation, said: "We are delighted to being working alongside King Sturge to support the CLG. The Mortgage Rescue Scheme is a landmark initiative and has already started to make a critical difference to a number of the most vulnerable families in the UK."
Andrew Frost, partner at King Sturge, said: "Choosing the right supplier in this key area of our business is more important now than ever. Connells credentials for delivering quality service and their ability to tailor their systems to meet our changing needs is testament to their success".
Source
The contract has been secured through Connells' existing partnership with property services provider, King Sturge.The Mortgage Rescue Scheme operates by bringing together local authorities, Registered Social Landlords (RSLs), lenders and debt advice agencies.
The scheme has two elements- shared equity - where the RSL provides an equity loan, enabling householders' mortgage payments to be reduced and Government mortgage to rent - where the RSL purchases the property and the householder pays rent to the RSL at a level they can afford.
Over the next two years, it aims to help thousands of households who are vulnerable to losing their homes through repossession.
Ross Bowen, managing director at Connells Survey & Valuation, said: "We are delighted to being working alongside King Sturge to support the CLG. The Mortgage Rescue Scheme is a landmark initiative and has already started to make a critical difference to a number of the most vulnerable families in the UK."
Andrew Frost, partner at King Sturge, said: "Choosing the right supplier in this key area of our business is more important now than ever. Connells credentials for delivering quality service and their ability to tailor their systems to meet our changing needs is testament to their success".
Source
Saturday, November 28, 2009
New scheme to help home owners struggling with mortgage debt
The Government has launched a national scheme to help home owners falling into debt with their mortgage payments.By providing good advice and assistance, the scheme aims to help mortgage borrowers stay in their home if they encounter problems paying their mortgage.
It may be sensible to use this timely information in conjunction with other debt management advice services and web sites.
Based around a user friendly web site, the mortgage help scheme offers a step by step guide to how to handle the situation so that struggling borrower can keep his home.
Covering topics such as missed mortgage payments, the threat of repossession and court orders, the web site advises people to face up to their difficulties and contact their mortgage lender as soon as possible.
There are links to local authority resources that may be able to help those close to repossession or a court appearance and detailed information about the processes that may result in the loss of a home.
This information campaign has won the support of the Council for Mortgage lenders. Michael Coogan, the CML’s director general commented
“We welcome this additional initiative by the government to remind borrowers to speak to their lender at the earliest possible opportunity, and preferably as soon as they think they might miss a payment. Avoiding possession is as important to lenders as it is to borrowers, and an early warning will help reduce the risk of this worst-case outcome.
Source
It may be sensible to use this timely information in conjunction with other debt management advice services and web sites.
Based around a user friendly web site, the mortgage help scheme offers a step by step guide to how to handle the situation so that struggling borrower can keep his home.
Covering topics such as missed mortgage payments, the threat of repossession and court orders, the web site advises people to face up to their difficulties and contact their mortgage lender as soon as possible.
There are links to local authority resources that may be able to help those close to repossession or a court appearance and detailed information about the processes that may result in the loss of a home.
This information campaign has won the support of the Council for Mortgage lenders. Michael Coogan, the CML’s director general commented
“We welcome this additional initiative by the government to remind borrowers to speak to their lender at the earliest possible opportunity, and preferably as soon as they think they might miss a payment. Avoiding possession is as important to lenders as it is to borrowers, and an early warning will help reduce the risk of this worst-case outcome.
Source
Sunday, November 15, 2009
Home repossessions will continue
THE threat of hard-pressed families losing their homes will continue for two more years, housing minister John Healey warned last night as he unveiled the first wave of council house building for two decades.
Millions of pounds in public money is to be ploughed into the new homes.
But there will be just a handful in the Westcountry despite there being 60,000 people on waiting lists, which are likely to swell further as more people lose the battle against repossession.
The latest figures show there were 715 mortgage repossession claims issued in Devon, Cornwall and Somerset in the three months to June this year.
It shows a drop of about 30 per cent on the same time last year, which the Government claimed was down to increased help for those at risk of losing their home.
But the flagship Mortgage Rescue Scheme – which sees private homes sold to a housing association and rented back – has been widely criticised for failing to help a single household in the Westcountry.
Last month, the WMN revealed one family in Camborne, Cornwall, were left worse off after applying, being accepted and later rejected after running up thousands of pounds in mortgage arrears.
Mr Healey claimed efforts to help those struggling with mortgage payments in the recession were working.
But in a bleak warning about the economic prospects of millions of homeowners, he added: "Repossessions are still higher than before the recession and the pressures will continue. The risk of people losing their homes will continue at least for a couple of years, but recently repossessions have gone down as a result of the action we've taken."Today, he will announce a new programme of council house building, the first of its kind for 20 years. The Department for Communities claims the 2,000 homes nationwide will create 5,000 jobs in the construction industry.
"This is using the power of Government to act to build the homes that people need to keep the construction jobs that the economy wants and to help the economy through the recession," said Mr Healey.
However, in the Westcountry, there are pledges of just 38 new homes in East Devon and Exeter for 115 people, at a cost of £2.6 million.
No other local authority in Devon, or any in Cornwall and Somerset, applied for the money available in the first round of new council house building.
And in another blow to the Government's announcement, the Audit Commission will today claim councils focus too much on building new homes and should pay more attention to improving existing housing in their area.
The public spending watchdog said one in three councils struggled to understand the housing market they had on their own doorsteps. Councils felt pressured into focusing on building brand new housing, with 94 per cent prioritising new and affordable housing targets in their local area agreements.
But less than one in three councils had prioritised targets relating to their existing housing stock, such as bringing empty properties back into use, despite the financial savings, environmental improvements and social benefits of doing so.
Source
Millions of pounds in public money is to be ploughed into the new homes.
But there will be just a handful in the Westcountry despite there being 60,000 people on waiting lists, which are likely to swell further as more people lose the battle against repossession.
The latest figures show there were 715 mortgage repossession claims issued in Devon, Cornwall and Somerset in the three months to June this year.
It shows a drop of about 30 per cent on the same time last year, which the Government claimed was down to increased help for those at risk of losing their home.
But the flagship Mortgage Rescue Scheme – which sees private homes sold to a housing association and rented back – has been widely criticised for failing to help a single household in the Westcountry.
Last month, the WMN revealed one family in Camborne, Cornwall, were left worse off after applying, being accepted and later rejected after running up thousands of pounds in mortgage arrears.
Mr Healey claimed efforts to help those struggling with mortgage payments in the recession were working.
But in a bleak warning about the economic prospects of millions of homeowners, he added: "Repossessions are still higher than before the recession and the pressures will continue. The risk of people losing their homes will continue at least for a couple of years, but recently repossessions have gone down as a result of the action we've taken."Today, he will announce a new programme of council house building, the first of its kind for 20 years. The Department for Communities claims the 2,000 homes nationwide will create 5,000 jobs in the construction industry.
"This is using the power of Government to act to build the homes that people need to keep the construction jobs that the economy wants and to help the economy through the recession," said Mr Healey.
However, in the Westcountry, there are pledges of just 38 new homes in East Devon and Exeter for 115 people, at a cost of £2.6 million.
No other local authority in Devon, or any in Cornwall and Somerset, applied for the money available in the first round of new council house building.
And in another blow to the Government's announcement, the Audit Commission will today claim councils focus too much on building new homes and should pay more attention to improving existing housing in their area.
The public spending watchdog said one in three councils struggled to understand the housing market they had on their own doorsteps. Councils felt pressured into focusing on building brand new housing, with 94 per cent prioritising new and affordable housing targets in their local area agreements.
But less than one in three councils had prioritised targets relating to their existing housing stock, such as bringing empty properties back into use, despite the financial savings, environmental improvements and social benefits of doing so.
Source
Wednesday, October 28, 2009
Does the homeowners mortgage support scheme really help?
As the recession continues to bite into the UK property sector, more and more people are struggling to cover their monthly mortgage payments and looking for assistance. While the homeowners mortgage support scheme has been in place for some time there is some controversy regarding the basis on which the scheme operates.
In simple terms, households who see a significant drop in their income which could take away their ability to cover their monthly mortgage payments will have the option to switch to an interest only mortgage and defer up to 70% of interest payments from a maximum of two years. While this may well give some short-term relief to those struggling to survive in the UK, there is significant concern that all this is doing is stacking up larger debts for the future.
If those who take part in the homeowners mortgage support scheme see no improvement in their financial status within the two-year period then ultimately they will be in the same position with a higher debt load. The fact that many of the U.K.'s major mortgage providers refused to join the scheme says everything, with some citing the fact that they already have better schemes in place which are available to struggling homeowners.
Source
In simple terms, households who see a significant drop in their income which could take away their ability to cover their monthly mortgage payments will have the option to switch to an interest only mortgage and defer up to 70% of interest payments from a maximum of two years. While this may well give some short-term relief to those struggling to survive in the UK, there is significant concern that all this is doing is stacking up larger debts for the future.
If those who take part in the homeowners mortgage support scheme see no improvement in their financial status within the two-year period then ultimately they will be in the same position with a higher debt load. The fact that many of the U.K.'s major mortgage providers refused to join the scheme says everything, with some citing the fact that they already have better schemes in place which are available to struggling homeowners.
Source
Thursday, October 15, 2009
Government help for struggling homeowners
A new campaign has been launched to highlight the government support that is available to homeowners. This includes the Homeowners Mortgage Support Scheme which enables those who hit hard financial times to defer interest payments for up to two years while they get their family finances back on track.
Michael Foster said:
“Over 300,000 people across the UK have so far have received help and advice in paying their mortgage since April 2008 which is fantastic news.
“I have often met with constituents who face losing their home and I know it is one of the most frightening experiences for people. Thankfully there is a lot of help out there and I want the people of Hastings and Rye to be aware of that. The worst thing people can do is bury their heads in the sand.
“If you want help regaining control of your finances the best place to start is the National Debtline on 0808 808 4000. They offer impartial advice, real life examples of people who have already benefited from support, and can help you develop a personal action plan tailored to your particular circumstances.
“This action stands in contrast to the lack of action taken by the Conservative Government during the last recession, who did nothing to help families facing the threat of repossession.
"Today the Conservatives have changed their words but not their actions. They are happy to advise people to take up the help that Labour has introduced - but voted against the funding to pay for key measures like our increased support for mortgage interest."
Source
Michael Foster said:
“Over 300,000 people across the UK have so far have received help and advice in paying their mortgage since April 2008 which is fantastic news.
“I have often met with constituents who face losing their home and I know it is one of the most frightening experiences for people. Thankfully there is a lot of help out there and I want the people of Hastings and Rye to be aware of that. The worst thing people can do is bury their heads in the sand.
“If you want help regaining control of your finances the best place to start is the National Debtline on 0808 808 4000. They offer impartial advice, real life examples of people who have already benefited from support, and can help you develop a personal action plan tailored to your particular circumstances.
“This action stands in contrast to the lack of action taken by the Conservative Government during the last recession, who did nothing to help families facing the threat of repossession.
"Today the Conservatives have changed their words but not their actions. They are happy to advise people to take up the help that Labour has introduced - but voted against the funding to pay for key measures like our increased support for mortgage interest."
Source
Monday, September 28, 2009
New campaign offers practical support for struggling homeowners
Housing Minister John Healey today launched a new national campaign to help struggling homeowners take control of their finances and make the most of the support available for them to avoid repossessions and stay in their homes.
A series of press, online and billboard advertisements will highlight the measures the Government has put in place at every stage for homeowners to avoid repossession. Over 300,000 people have received help and advice in paying their mortgage since April 2008.
The advertisements will point people to an advice line and a new website illustrating the practical steps they can take to resolve their mortgage repayment worries, as well as contacts for the wide range of support available.
While this will be a national campaign, extra advertisements will appear in 22 "hotspots" - areas facing a greater risk of increased repossessions due to higher levels of unemployment and numbers of court orders.
A series of press, online and billboard advertisements will highlight the measures the Government has put in place at every stage for homeowners to avoid repossession. Over 300,000 people have received help and advice in paying their mortgage since April 2008.
The advertisements will point people to an advice line and a new website illustrating the practical steps they can take to resolve their mortgage repayment worries, as well as contacts for the wide range of support available.
While this will be a national campaign, extra advertisements will appear in 22 "hotspots" - areas facing a greater risk of increased repossessions due to higher levels of unemployment and numbers of court orders.
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