Mortgage rescue scheme extended to 30 new repossession 'hotspots'

The Government today extended its campaign to help people struggling with their mortgage to 30 new repossession hotspots.

It will run a local advertising campaign in the areas raising awareness of where people who are falling behind with repayments can get help, such as through its website or by calling National Debtline.

The 30 cities and towns, which include Coventry, Darlington, Gateshead, Ipswich and Leeds, have been chosen because it is thought a high proportion of people living in them are at risk of repossession.

The Government is also launching a new radio and newspaper advertising campaign and running local mortgage help events with Citizens Advice in 56 areas which have previously been identified as repossession hotspots.

The first mortgage help events will take place in Birmingham, Peterborough and Salford, beginning this month.

Councils in the 86 hotspot areas will also receive £2 million from the Preventing Repossession Fund to help homeowners tackle arrears.

Housing Minister John Healey said: "With the pressure on homeowners set to continue this year, I'm determined that they get the help they need.

"That's why I'm extending our campaign so families across the country can get the free, impartial advice they need online, on the phone or on the high street.

"And it's why I'm boosting councils' coffers in the high risk areas so they can ensure people get the individual, flexible support they may need."

The Government has launched a raft of schemes to help struggling homeowners, including the Mortgage Rescue Scheme, under which people can sell some or all of their home to a social landlord and rent it back, as well as the Homeowner Mortgage Support scheme, which enables people to defer paying interest on up to 70% of their mortgage for up to two years.

The schemes, combined with lender forbearance and low interest rates, prompted the Council of Mortgage Lenders to slash its prediction for the number of people who will lose their homes in 2009 by a third to 48,000, although this will still be the highest figure since 1995.

Homeowners who are having problems paying their mortgage can get advice by calling National Debtline on 0808 808 4000 or visiting www.direct.gov.uk/mortgagehelp.