Healey announces new team to 'fast-track' urgent home repossession cases
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Housing Minister John Healey today announced plans to set up a
new 'central team' to fast-track help for urgent home repossession
cases.
The news comes on the day that the DCLG revealed the total number
of households across the country assisted by the Mortgage Rescue
Scheme had advanced from two at the end of April to six at the end
of May. The original intention was to help 6,000 families faced by
repossession.
The figures came in for criticism from Liberal Democrat Shadow
Chancellor Vince Cable who warned that the number of repossessions
is likely to soar over the next two years.
But John Healey defending the Government over its efforts to help
struggling homeowners.
He said: “We have put in place help for homeownwers
struggling with their mortgage at every step of the way - from free
debt advice when problems start, to free support for cases that
reach court. Extra protections have also been put in place so
lenders can only repossess homes as a last resort.
“By learning the lessons from the 1990s, over 200,000
families each month are now receiving direct assistance to stay in
their home, and thousands more have been able to benefit from free
advice following launch of initiatives such as the Mortgage Rescue
Scheme.
“To make sure families are getting the support they need
through the Mortgage Rescue Scheme, I can confirm that from next
month a new central team will operate to manage and fast-track the
cases of those most at risk of repossession.
“The Council of Mortgage Lenders have said that because of
the range of government and industry initiatives in place, more
people are getting valuable help and advice. This month the CML
also revised down their forecast for the number of repossessions
they expect this year in the UK."
The £285 million Mortgage Rescue Scheme (MRS) has been put in
place by Government to support up to 6,000 of the most vulnerable
homeowners facing repossession to remain in their home, over two
years.
It allows eligible households to either sell a part share in their
home and reduce monthly payments or sell their home and remain in
the property as a tenant paying an affordable rent.
Mr Healey added: "We have recently enhanced the scheme to allow
households previously excluded due to negative equity to access
this form of support, and injected a further £80 million into
the scheme."
"The Mortgage Rescue Scheme is just one of many levels of extra
protection for borrowers facing difficulties right now. These
include a new pre-court action protocol for all the main high
street lenders, quicker and more extensive support to home owners
who have lost their job, new Homeowners Mortgage Support for
households who suffer a temporary drop in income, and a major
extension of free debt and legal advice.
"Since the MRS launch in January, over a thousand households
struggling with their mortgage have received free advice from their
local authority each month.
"By end of May, over 200 households had benefited from action
through the scheme to stop the immediate threat of repossession,
with a further 295 households being assessed."
The full stats can be found at:
http://www.communities.gov.uk/publications/corporate/statistics/mortgagerescuestatistics
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