Debtors struggling with mortgage arrears are to be offered assistance in the form of tighter regulations on court action from lenders regarding repossessions.
Housing minister John Healey, who has also advised council leaders to offer practical support to residents fighting for their homes, said that the government decision to strengthen the rules regarding mortgages will help councils take early action and be more proactive in such situations.
“There is a clear role for local authorities to help those in difficulty find the most appropriate options to prevent them going through the trauma of repossession,” he said.
The regulations, which are due to come into force from tomorrow (October 1st), will ensure that creditors inform councils when repossession action is to take place.
Further help for debtors recently came from the Ministry of Justice, which issued a consultation document aimed at discovering the best ways aid can be given, including reassessing bank charges and fees.
By Sarah Adie