The Citizen’s Advice service has welcomed measures announced by the government that could help people avoid repossession.
Chief executive David Harker claimed that the reforms may be an effective way of keeping families in their homes, when unexpected events such as job losses occur.
“Helping people stay in their homes will reduce the risk of social exclusion that arises when families have to enter temporary accommodation”, he commented.
He added that the increased capital limit for the income support for mortgage interest system was particularly important.
However, he warned that for the new introductions to work, lenders must show “forbearance” and treat those in difficulty fairly by negotiating affordable payment arrangements.
Court action must only be “taken where all other options have failed” he concluded.
Meanwhile, in a bid to aid first time buyers, the chancellor revealed that stamp duty will be waived for home purchases under £175,000 for the coming year.