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Troubled borrower aid package revealed
12 May 2008 11:30
The government has announced a series of measures with the aim of ensuring that homeowners struggling to meet mortgage repayments do not end up losing their homes.
Latest figures from the Ministry of Justice have indicated that repossession claims rose by 16 per cent year-on-year over the first quarter to 38,688, while repossession orders issued have climbed by 17 per cent from the same period of 2007 to 27,530.
In order to stave off this threat, the government is investing £10 million on increasing the quality of advice on offer from various sources to repossession-threatened borrowers, as well as the availability of free representation to them in county courts.
Chancellor Alistair Darling also met with leading banks and stressed that the government wants them to give people on fixed-rates enough notice before their repayments change, to engage early with borrowers in difficulties and to only use repossession as a last resort.
He said afterwards that borrowers are clearly concerned about current mortgage market conditions and that it is vital that the government works with the industry to offer them as much support as possible both directly and through consumer groups.
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