Chancellor of the Exchequer, Alistair Darling, has recently announced that he wants banks to do what they can to help the more vulnerable families in the country, stating that banks need to help struggling homeowners in order to reduce the risk of rocketing repossession levels. Both Darling and the Housing Minister, Caroline Flint, have stated that banks need to give more time to families that fall behind with their repayments.
Darling went on to state that given the huge cash injection that the Bank of England has put into the money markets, along with the recently announced £50 mortgage rescue plan, taxpayers should expect this sort of assistance from banks. A recent report has shown that repossession order levels have increased over the past three months compared to the last three months of 20007, and many expect these figures to continue rising over the course of the year.
The Chancellor also expressed concern that many lenders had increased the cost of borrowing for consumers despite three interest rate cuts from the Bank of England since December. One of the suggestions that was put forward was the possibility of mortgage repayment holidays, which could increase flexibility for homeowners during months where finances were particularly overstretched.
Banks and building societies responded to Darling’s speech by stating that they already offer help to struggling homeowners in terms of coming to arrangements over arrears, but they did add that they were willing to go further in order to try and curb repossession levels. Banks are being asked to provide immediate help and assistance to those unable to meet their mortgage repayment, and wherever necessary to extend the term so that the monthly payment can be reduced.
Recent additions:
Related Posts
The Chancellor of the Exchequer, Alistair Darling, has recently expressed concern over the amount of interest that is being charged on loans that are taken out by small firms. »

Recent figures have shown that whist mortgage lending was up in October compared to September it appears that the residents of Great Britain are keeping focussed on paying off as much debt as possible. »

Rising personal debt levels in the UK have resulted in many consumers seeking advice and debt management assistance from one of the number of debt advice companies and charities around, and many have entered into debt management plans through these firms. However, in the past they have experienced difficulties in terms of making arrangements with creditors, who are often unhappy about freezing interest, accepting lower repayments, or writing off a portion of the borrower’s debt.»

Over recent months many homeowners have struggled with their mortgage repayments, and whilst some people are struggling with repayments every month, indicating that they need to find a long term solution such as cutting back on other costs or finding a more affordable mortgage deal, others find that they are finding it impossible to meet the mortgage repayment for the odd month or two. Many of those that suffer difficulties with their mortgage repayments on occasion rather than continuously turn to other forms of credit to make the repayment such as an expensive credit card – or in some cases simply allow their account to fall into arrears.»

New government regulations that have been introduced could result in debt agencies and charities in the UK being able to write off a portion of clients’ debts even in the event that creditors are not happy about the matter. Many people that are struggling with their debts now turn to debt management agencies and charities, and are often put onto a debt management plan, where they pay a set amount each month to the agency, and this is then distributed amongst the creditors on a pro rata basis.»

Leave a comment