New year offers new help to resolve mortgage worries

Published       1 January 2010 
Housing Minister John Healey has today urged struggling homeowners to make it their New Year's Resolution to seek early help, take control of their finances and avoid repossession - and pledged extra Government support to help them stay in their homes.

In a message to homeowners appearing on YouTube, he has highlighted the comprehensive range of support available for them to take action to keep their homes. Repossessions are running at half the rate of the last recession.

As part of his campaign to ensure repossession remains the last resort, Mr Healey has made free impartial advice available to homeowners either online at www.direct.gov.uk/mortgagehelp or by encouraging them to call the National Debtline on 0808 808 4000.

In January, National Debtline can see the number of calls they receive increase by more than a third. In his message to homeowners, Mr Healey said National Debtline and other advice agencies stand ready to take homeowners' calls and provide free, impartial advice.

Over the next few weeks, the Government is teaming up with Citizens Advice to run a series of local events where families can get free face-to-face and impartial information. These will take place in 56 repossession "hotspot" areas - identified as being at greater risk due to having higher levels of unemployment and repossession court orders.

Mr Healey has also announced that he is extending free advice available for homeowners with an extra £4million to local advice agencies like Shelter, to ensure this vital lifeline continues into the New Year.

Funding will also go to debt advice agencies and 80 court desks across the country. Even at the eleventh hour when families are in court facing repossession, this free advice and representation in court is helping stop repossession in four out of five cases.

This is part of a comprehensive range of Government support, including help with mortgage interest payments, tougher regulations on lenders, and special Government schemes for the most vulnerable households.

Over the last year, over 330,000 homeowners have received help and advice with their mortgages.
Examples include:

• Laura Pollock from Wirral, who was able to stay in her home thanks to the Mortgage Rescue Scheme. Laura went into mortgage arrears after going into teacher training and separating from her husband - but even as the mortgage company's final letter arrived, Wirral Council put her in touch with the Plus Dane group, the local housing association, who were able to buy Laura's home enabling her to continue living there as a tenant.
• Mr and Mrs Lunn of Droitwich - when Mr Lunn was made redundant in 2008, he tried to claim on his Mortgage Protection insurance, only to be told he was ineligible because he had been working for an agency. When the mortgage company decided to take repossession action, the family approached Wychavon District Council for advice. The council, working with the West Mercia Housing Group, agreed that the Mortgage Rescue Scheme was a good option for the family. West Mercia bought the property, and Mr and Mrs Lunn have been able to stay in their home as tenants.
• Mr and Mrs W in Gateshead, who faced repossession after failing to keep up their mortgage payments when Mr W was made redundant in January 2009. On hearing their case through the local court advice desk, Citizens Advice helped the family to apply for benefits, and approached the lender on their behalf to negotiate for the mortgage debt to be transferred to interest only. On returning to court in October, the repossession order was suspended and Mr and Mrs W have been able to keep their home.
• Richard in Tavistock, who faced repossession after losing his business. Through Shelter, his family were able to get financial assistance from West Devon Borough Council, before getting confirmation that they were eligible for help through the Support for Mortgage Interest scheme - help with their mortgage interest payments was also backdated, so they could afford to stay in their home.

John Healey said:

"Many families will have money worries after Christmas and when they are under pressure with their finances the worst thing they can do is put off the problem.

"I want homeowners to know there's free help with their mortgage, by phone, website and local money advice agencies. I'm extending free advice services into next year with £4million extra Government cash, and we're running a series of local events in 56 repossession 'hotspots' so face to face help is also on hand where it is most needed.

"I'm also making sure we continue our special help in court. Even at the eleventh hour when families are in court we're able to stop four out of five repossessions. I urge people to make a New Year's resolution not to bury their heads in the sand but to make the most of the help available. The earlier people act, the more options they have and the better chance they have of safeguarding their home."

Consumer Minister Kevin Brennan said:

"Consumers up and down the country are feeling the impact of the recession. That's why we are injecting extra cash to help people get access to the support they need.

"To improve advice in the downturn the Government allocated an extra £15 million to the Citizens Advice Bureaux. By March this cash will have been used to train over 1,700 new volunteers, extend opening hours and help a minimum of 335,000 extra people. My New Year message is that anyone struggling with debt issues should seek immediate advice from experts, they have the know-how to provide real help. Getting advice can be the first step in taking control of your finances."

Shelter's Director of Policy and Campaigns Kay Boycott said:

"Both government and lenders have increased the options available for struggling homeowners, and getting advice early can play a vital role in helping people keep their homes.

"Thousands of homeowners will be starting the new year with the threat of repossession hanging over them. The first step is to call a dedicated helpline such as Shelter's on 0300 3300 515."

Notes to Editors
1. John Healey's YouTube message to homeowners can be viewed at: http://www.youtube.com/watch?v=GyMBeZKKmrQ
2. The 56 hotspot areas 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
• Barnsley
• Derwentside
• Doncaster
• Easington
• Luton
• Middlesbrough
• North Lincolnshire
• Nuneaton and Bedworth
• Oldham
• Peterborough
• Rochdale
• Rotherham
• Sedgefield
• South Tyneside
• Stockton-on-Tees
• Stoke-on-Trent
• Tameside
• Tamworth
• Wear Valley
• Wellingborough
• Ashfield
• Blackburn with Darwen
• Blackpool
• Blyth Valley
• Bradford
• Burnley
• Chester-le-Street
• Croydon
• Greenwich
• Lewisham
• Rossendale
• South Holland
• Thurrock
• Waltham Forest