Homeowner Loans 10m Of UK Government Help On Debt Advice Services

Homeowner Loans - 10m Of UK Government Help On Debt Advice Services

The government has announced measures to assist those with homeowner loans who are under the threat of repossession. Especially those who can not support their loans because of the global credit crunch.

For households at risk of repossession there are new arrangements in place with the Ministry of Justice to give free legal representation at county courts in England. This gives a homeowner at risk more time to explore other options.

The National Housing Advice Service will provide a new comprehensive debt advice service.

There will be an additional 9m funding for face-to-face debt advice services given by groups such as the Citizens Advice Bureau.

There will be specialist training for Citizen Advice Bureau staff and local authorities on debt advice.

The Government claims to fund over 200m of debt advice for individuals in financial difficulty. Services such as Citizens Advice, Local CA Bureaux and Financial Inclusion Fund.

Treasury and Housing ministers are to meet debt advice and consumer groups soon to discuss what more can be done to help people who are experiencing difficulties with their debt repayments.

The government wants to see best practice guidance that will ensure: that people on fixed rate mortgages are given enough warning before their repayments change; banks and building societies will engage with customers as early as possible to see if they can help those in difficulties by rescheduling repayments; banks and building societies will provide advice to people on how they can get independent debt advice at the earliest possible stage; and repossession will only be used as a last resort.

Housing Minister Caroline Flint said the package will help borrowers who are concerned about mortgage struggles brought on by the global credit crunch.

"We know that some borrowers are concerned about their mortgages in the current market conditions. Some lenders are now passing on interest rate cuts and we want to see the rest follow as soon as possible. But for the minority of owners who may need support and advice now, we want to ensure it is there for them in the right place and at the right time." Flint added that the situation in the housing market was different to that experienced in the UK in the early 1990s. "The fundamentals of the housing market remain strong with high employment, low interest rates, and long term demand for homes from first time buyers."