Chancellor extends repossession help

Chancellor Alistair Darling has announced that he intends to tackle the number of repossessions being seen in the UK.

During yesterday’s Budget announcement to the House of Commons, Mr Darling unveiled extra help for people struggling with debt management on their home loans in the economic downturn.

“One of the biggest fears when people lose their jobs is that they and their family will also lose their homes,” he noted.

The chancellor revealed that the Support for Mortgage Interest scheme, which offers debt help to those who become unemployed, will be extended for a further six months.

In addition, he stated that the flow of mortgages into the financial sector is to be supported by government-backed securities.

Nationwide chief economist Fionnuala Earley said that the move should help to “add some liquidity to the market”, but noted that this alone will only make a “limited difference” to lending activity.

By Jamie Price