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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."

Hi John,as always the first to bring breaking news on debt to this board.

As for the aformentioned story I don't buy any of this 'Help scheme' package that's been offered. Advice Advice and more Advice is all we ever get.Consumers needs real concessions like mortgage payment holidays as in seen the US;reduced scheduled payments etc

The banks going along with this 'help' schemes are just hobbling on as willy nilly operators. We only heard last night on the News the number of Repossesssion orders have increased -so would the Banks back off from these attempts to get debtors to pay and not fall into even greater arrears which also incurs punative charges??? Politicians are acting like bumbling idiots who doesn't know which way to turn and throwing good money after bad with his scheme.

The Banks are still watching their profit margins like scrooge. The whole government help package is another 'Pie in the sky' as in the £50 Billion AAA mortgage/HM glit swap arranged by the BOE. [LITTLE EFFECT ON EASING WHOLESALE MORTGAGE LENDING.] I grant that the LIBOUR lending rate is closing on and BASE rate -but that's academic.

Two Econmists have already said the UK Housing crash have arrived, with £1 million Home properties losing 15% already in 12 months along with one and two bed room flats even in London going into neg Eq having been brought by people last autumn.

WE need more than a talk scheme to solve this mortgage indebtedness problem.Something akin to - 'Moses Parting the Red sea'for this day and age.

£25billion+ might be nice, like they gave to NR!!!!!

Hi Emily

I agree that this is perhaps just for PR. I am sure they will do a great job and produce some wonderful leaflets etc, but people need help ( REAL HELP ) now and I am not sure the Govt actually know what a mess we are in.

We see people every day who have 1st and second mortgages with huge interest rates making the houses unaffordable. Most would be much better off renting.

Payment holidays, A cap on interest charges for loans, a vaive of some early redemption penalties etc would certainly ease the pain and may help to slow the crash

Talking with some of our colleagues at the "Frugal Friends" meeting last night really brought it home to me how much 'suffering' there must be out there at the moment ... and I fear that we are only seeing a very small tip of the iceberg at the moment.
[:(]
Debbie