David Williams said, “Labour is acting to help homeowners through the global economic downturn, when the Tories would do nothing.”A mortgage rescue scheme to help vulnerable families at risk of repossession to stay in their homes is being rolled out today.
The £200 million scheme is one of a range of measures the Government is putting in place to help ensure repossession is always a last resort.
The scheme is targeted at the most vulnerable households who would be eligible for homelessness assistance if their home was repossessed, such as the elderly, disabled or those with children, with a household income under £60,000 a year.
Households will be able to apply for this support from their local authority, and will be offered two options to help them remain in their homes, depending on their circumstances.
They will either be able to sell a share of the equity in their home to a housing association, enabling their monthly mortgage payments to be significantly reduced, or they can sell the entire home to a housing association and remain in the property as tenants paying a subsidised rent.
In addition to mortgage rescue, the Government has taken a number of measures to support households at risk of repossession. Last week, changes came into effect on Support for Mortgage Interest (SMI), cutting by two thirds – from 39 to 13 weeks - the time before homeowners who lose their jobs receive financial help with the interest payments on their mortgage. The Homeowner Mortgage Support Scheme, which will allow households who suffer an income shock to defer part of their payments for up to two years, is being urgently developed with lenders.
David Williams, Labour’s Prospective Parliamentary Candidate for Crewe and Nantwich, said:
"I know that some families are worried about their mortgage payments right now and the Government is determined to do everything possible to ensure repossession is always a last resort. For the most vulnerable households, the mortgage rescue scheme will be available across England to help ensure they can remain in their homes.
“This is part of a range of measures the Government is putting in place to help households at risk of repossession in the current climate. As well as expanding free debt and legal advice, Labour has increased the support available for people who lose their jobs, and are introducing the option for homeowners to defer part of the loan to give them the time they need to get back on their feet.
“Whatever the situation, the clear message for households struggling with their payments is to speak to their lender as soon as possible.”
ENDS
For further information please contact David Williams on 07798 696 603.
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