Housing Minister Healey Pledges More Support For Struggling Homeowners in 2010

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.


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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".


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