Home owners at risk of repossession will now have access to a £10m package of support services, under government plans unveiled today. This morning chancellor Alistair Darling and housing minister Caroline Flint launched the package. It includes an extra £9m funding for face-to-face debt advice provided by third sector partners including Citizens Advice Bureau.
The support includes expanded access to free legal representation at county courts throughout England for households at risk of repossession. The National Housing Advice Service will be strengthened to provide a new comprehensive debt advice service. There will be more specialist training for Citizen Advice Bureau staff and local authorities on debt advice to help families get their finances back on track. The measures are aimed particularly at the high number of borrowers whose fixed rate deals are due to come to the end of their terms this year.
Treasury and housing ministers will meet consumer and debt advice groups next week to discuss what more can be done to help people who are experiencing difficulties with their debt repayments.
After meeting the chancellor, six major UK retail banks including Lloyds, Barclays, Royal Bank of Scotland, HBOS, Abbey and HSBC all agreed to work closely with these support groups to establish how best to help customers, including what extra financial support the industry could provide.
Darling says: "The fundamentals of the housing market remain strong with high employment and low interest rates. "But it is clear from speaking to consumer groups and the mortgage industry that borrowers may be concerned about the impact of the current market conditions on their mortgages." He addS: "That is why it is vital that the government, working with industry, offers as much support as possible both directly to those people and to the consumer advice groups who can help them in their day-to-day lives."
