The Council of Mortgage Lenders (CML) has told the leaders of the Conservative Party that public policy should be focussed more directly on helping homeowners who are struggling to meet their debt management commitments.
Income support for mortgage interest was “severely cut back” due to government policy in 1995 and the reintroduction of this benefit would help some of the homeowners most at risk of repossession, the CML suggests.
The council also made clear that with many thousands of fixed-rate mortgage deals due to come to an end in the early part of next year, consumers across the country are likely to need financial help to avoid debt management disaster.
CML director general Michael Coogan CML director general Michael Coogan, said: “[The Conservatives] are rightly concerned to address the issue of how best to support home-owners who may face payment difficulties over the coming year.
“As we explained, this can best be achieved through a mixture of lender forbearance and public policy.”
The CML forecast recently that there will be around 50 per cent more home repossessions in the UK next year than will prove to have been the case during 2007.