Councils given £20m for emergency loans
Local authorities are to be given £20 million to lend to families at risk of losing their homes through repossession or eviction.
The measure, which was announced in the Budget, comes alongside changes to the government’s Mortgage Rescue Scheme that allow homeowners in negative equity to apply.
Previously borrowers whose mortgages exceeded the value of their homes had been excluded from the £200 million scheme, which lets homeowners reduce their mortgages by transferring part or all of their home to a housing association.
The Budget report reads: ‘In light of house price falls over the past year, the government is extending its support for vulnerable homeowners in financial difficulty through widening the eligibility criteria for the Mortgage Rescue Scheme so that households in negative equity are not excluded.’
Have your say
You must sign in to make a comment
Readers' comments (1)
Adetayo Adebesin | 09/05/2009 12:47 pm
Injecting a sum of £20m to assist families facing risk of losing their homes through repossession is very attractive and a responsible approach by the government.
However, for those whose mortgages exceed the value of their homes will need additional financial assistance and not just allowing them transfer part or all of their homes to housing associations.
It is disturbing what the current economic climate has created to the housing industry in the UK, making house prices on a downward spiral spin without fault of the homeowners. This has made homeowners vulnerable in these turbulent times.
It would be wise for the Mortgage Rescue Scheme (MRS) to make adequate provisions by widening the eligibility to cover homeowners whose house value is negative equity. Keeping homeowners in their homes is the right option to be considered by the government.
Unsuitable or offensive? Report this comment