Homeowners will be supported so that their properties are not repossessed, states the government

Posted under General by Michael

Homeowners will have enough support to make sure that their properties are not repossessed, the government has clarified. The assurance came after leading mortgage industry players met Housing Minister Caroline Flint and Chancellor Alistair Darling at 11 Downing Street. The Council of Mortgage Lenders (CML) termed the meeting as ‘useful’ and stated lenders were trying to play their role in keeping customers in their homes. 

Ms Flint stated after the meeting: “We wish to make sure there continues to be fairness and stability in the housing market, and that the support is there in place for consumers who may need it - right now.” But it was not outlined how they would prevent people losing their homes. 

There are increasing concerns over the acute increase in repayments facing an estimated 1.4 million individuals nearing the end of their short-term fixed rate deals, especially those who do not enjoy very high levels of equity in their properties.  Mortgage providers have already tightened up on lending, since the banks have not been coming forward to lend to each other. According to the CML’s latest figures, mortgage lending was down by 8 per cent in the first three months of the year compared with the first quarter of last year.

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