Lib Dems Warn of Local Mortgage Arrears and Repossession Crisis
November 7, 2008 12:00 AM
The Liberal Democrats are warning that the sudden deterioration in the economy and in the housing market will cause large numbers of residents to get into mortgage arrears leading to repossession orders and then repossession.
Mike Popham said "I am concerned that high levels of personal debt exist, jobs may soon dry up, house prices are falling sharply, most people who bought at the peak of the market in 2006/7 are not insured with payments protection, and there are a lot of ruthless money lenders out there, especially those with second charges on property, who have no compunction but to put people into court and on the streets."
The Liberal Democrats are pressing government ministers to give new instructions to the courts on the procedure for repossession so that it became a very last resort: "I remember the disasters of the early 1990s when loss of job was often followed by loss of a home. The Government knows what it should be doing this time round: mortgage lenders have to demonstrate that they have offered every reasonable alternative including shared ownership: borrowers have to be given access to independent financial advice.
I also want to see a system introduced whereby people who cannot service their mortgage are able to rent back their property - not from one of the sharks in the 'rent-back' business but from a social landlord, perhaps on a temporary basis", Mike Popham said.
What would you like to do next?
-
Subscribe for updates
Follow the party's activity on...
- Twitter:
- Liberal Democrats
- Facebook:
- Liberal Democrats
- YouTube:
- Liberal Democrats