IRRV Alert - week ending 9th October 2009

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John Healey launches debt advice drive to hit repossession hotspots

 

 

 

Published 8 October 2009

Housing Minister John Healey has today launched an intensive drive to help struggling homeowners in 'repossession hotspots' get a grip on their finances and save their homes.

Twenty-two hotspot areas are being targeted as having a higher risk of repossessions, due to high levels of unemployment and numbers of court orders for repossessions.

So from this week, advertisements highlighting the range of Government support available to homeowners will appear in local newspapers, online and on billboards. It is the second stage of the national Mortgage Help campaign John Healey launched last month.

Concerned homeowners can go to www.direct.gov.uk/mortgagehelp (external link) or call the National Debtline free on 0808 808 4000, where they can get impartial advice, find out the steps they can take to keep their home and prepare an action plan to tackle their own finances - over 300,000 people have received help and advice in paying their mortgage since April 2008.

John Healey said:

"The worst thing anyone facing money worries can do is bury their head in the sand. We've seen recent drops in the numbers of repossessions - but I know the threat will remain high throughout next year and I want people to have the help they need.

"Over 300,000 people have benefited from the range of Government support available at every step of the way, from free debt advice to help with mortgage interest payments and, for the most vulnerable, the Mortgage Rescue Scheme.

"I want other struggling homeowners to follow in their footsteps, go to our website or make that call to the National Debtline for details of the comprehensive range of support that's available."

Notes to editors

1. Steps have been taken to ensure help is available at every stage of the repossession process. This includes:

  • Action on advice: The Government is investing £130m in providing free face-to-face debt advice services between 2006 and 2011, and over the past year more than 100,000 families have received information and advice about their mortgages from councils and Citizens Advice Bureaux
  • Action on lenders: We have taken action so homeowners are treated fairly with tolerance and understanding from lenders for those in mortgage arrears - 116,000 struggling households are now benefiting from special arrangements agreed with their lender
  • Action in the courts: Lenders must prove they have exhausted every possible option before applying for a repossession order. Government has continued to put funding into Court Desks offering free, on-the-day legal advice and representation for those threatened with repossession. CLG recently doubled the extra funding to support this service. There is now universal access to this service for people attending repossession hearings at county courts in England. Even on the day of a repossession hearing, around four in five repossessions can still be stopped if the households attend court and access free advice
  • Action to provide direct support: Through special Government schemes like Support for Mortgage Interest and Homeowners Mortgage Support over 200,000 families are now getting help with their mortgage interest payments - with another 88,000 expected to benefit over the next two years. And for the most vulnerable households facing the immediate threat of repossession, there is the safety net of the Mortgage Rescue Scheme.

2. The 22 areas identified as having a higher proportion of homeowners at risk of repossession are:

  • Barking and Dagenham
  • Corby
  • Knowsley
  • Salford
  • Newham
  • Walsall
  • Redditch
  • Halton
  • Sandwell
  • Wolverhampton
  • Nottingham
  • Birmingham
  • Manchester
  • Bolton
  • Liverpool
  • Sunderland
  • Reading
  • Wigan
  • Swindon
  • Northampton
  • Kingston-upon-Hull
  • Cannock Chase

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