Government Repossession Help
Homeowners who are struggling to repay their
mortgage could receive Government help. The promise was made after key people from the mortgage industry met with Chancellor Alistair Darling and the Housing Minister.
The package is aimed primarily at those whose fixed-rate
deals end this year. The credit crunch will mean expensive repayments and less availability of mortgages for over a million borrowers.
To limit the impact, a new debt advice service will be set up through the National Housing Advice Service. In addition, the Citizen's Advice Service and local authority staff will be provided with specialist training.
There will also be free legal representation for those facing repossession.
Housing Minister Caroline Flint said
"It is important to recognise we are dealing with an entirely different situation in the market from what was experienced 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."