Clare Francis says:
“The first thing homeowners should do is to seek help as soon as
they experience problems repaying their mortgage. There is wealth of
help out there – whether it’s face-to-face, online or over
the phone – and there’s no need to struggle alone. In the
vast majority of cases where homeowners seek help, they are able to
keep their homes.”
Latest figures from the Council of Mortgage Lenders show there were 11,400
repossessions between April and June this year, a 10% drop on the previous
quarter. But over a quarter of these repossessions were voluntary -
homeowners who have fallen into mortgage arrears but rather than seek help
available from Government or their lender, have instead handed in the keys
or abandoned their home.
With the advice available via a range of resources, including Government
help and advice from organisations such as Citizens Advice Bureau,
households can get help to avoid the trauma of repossession.
Housing Minister John Healey has recently launched a new advertising
campaign to encourage people struggling with their mortgages to go online
to
www.direct.gov.uk/mortgagehelp,
or ring the National Debtline on 0808 808 4000, to find out about the
comprehensive range of support Government has put in place at every step of
the repossession process.
While this is a national campaign, extra advertisements will appear in 22
‘hotspot’ areas across Britain which face a greater risk of
increased repossessions due to higher levels of unemployment and numbers of
court orders.
Kelly Carr and her family are a good example of this advice in practice.
Kelly and Jamie Carr and their five children, were so convinced that
they would be made homeless they had packed their bags and even moved some
of their furniture to friends’ homes. The family was in debt
and repossession was facing them. Now, six months later they are
still in their home thanks to going to their local Citizens Advice Bureau
in Melton Mowbray.
“We’d heard of Citizens Advice,” said Kelly,
“but didn’t realise how helpful they could be. Going
to see them was the best thing we ever did.” Their house is
now being purchased by the East Midlands Housing Association.
Kelly and Jamie will rent it back from them. They can stay in
their home and there is no disruption to the family.
“I’d like to think that our story might help other
people,” said Kelly. “Help is out there,
don’t’ be afraid to ask for it.”
Housing Minister John Healey said:
"When homeowners are under pressure and feel their finances are
spiralling out of control, the worst thing they can do is bury their
heads in the sand. I want them to know that sensible, impartial advice
is available online or over the phone so they are able to arm
themselves with the facts and take control.
"In most cases where people seek help they are able to keep their home,
so we have made sure a range of support is available to them - whether
free debt advice or help with interest payments, a request for lenders
to show greater tolerance and understanding to those in arrears,
on-the-day legal advice for those facing court hearings or, for the
most vulnerable households, the Mortgage Rescue Scheme.
"The action we've taken means we've seen recent drops in the numbers of
repossessions, but there's no room for complacency. The message is
clear: it's your home - let's keep it that way. "
Citizens Advice Bureau’s Creditor Liaison Policy Officer Alex
McDermot says:
“In my role, I’m able to see hundreds of homeowners benefit
from our services. The Government has invested £130million in
free debt advice, and where homeowners have taken advantage of this
resource, the outcome has been overwhelmingly positive.”
This advice accompanies the recently launched website, which draws together
all the help and advice available to struggling homeowners in one
place.
The website,
www.direct.gov.uk/mortgagehelp,
offers clear and helpful advice, illustrating the practical steps
homeowners can take to resolve mortgage repayment issues and provides
contact details for the various support outlets which provide help and
advice.
There are a variety of schemes and resources which provide help and advice
for struggling homeowners and
www.direct.gov.uk/mortgagehelp
draws all this information together, helping homeowners to take control of
their situation and explore the option which best suits them. This support
can vary from free debt advice to help with interest payments, special
arrangements with mortgage lenders, on-the-day legal advice for those
facing court hearings, or, for the most vulnerable households, the Mortgage
Rescue Scheme.
The website is supported by a series of press and online advertisements,
designed to highlight the website and the National Debtline advice number.
