Help for repossession hotspot

The Borough of Rochdale is one of 86 repossession “hotspot areas” that is to share an extra £2.5million funding to ensure struggling homeowners get the help they need to avoid repossession - hotspots are identified as being at greater risk due to higher levels of unemployment and repossession court orders.

New figures from the Financial Services Authority show there were 11,752 repossessions during the last three months – down 15 percent on the third quarter of 2009 and 11 per cent fewer than the same period in 2008, taking the total for the year to 54,055

The Council of Mortgage Lenders (CML) have cited the comprehensive range of Government help, lower interest rates and greater lender tolerance and understanding as the key reasons why repossessions are running at half the rate of the last recession.

The Government has put in place a comprehensive range of support for struggling homeowners, and more than 330,000 homeowners have received help and advice with their mortgage in the last year alone.

The Government has also tightened the rules on lenders so they must prove they have exhausted every possible option before seeking court action. Last year, the number of repossession court orders fell by a quarter – and every region of the country saw a fall in repossession court cases. In the North West, the number of mortgage possession claims issued fell by 27 per cent in the last three months of 2009 compared with the same period in 2008.

But the CML has also warned that the pressure on homeowners will remain throughout 2010.

So the Minister has today dedicated an extra £2.5million to the Government’s campaign to help anyone with mortgage worries to seek advice and get a grip on their finances.

In September, the Government launched the “It’s Your Home” campaign, to encourage struggling homeowners to get the help they need and avoid losing their home.

Advertisements have appeared nationwide, and also in 15 North West repossession “hotspots” identified at greater risk due to higher levels of unemployment and repossession court orders, pointing to the help available for those with mortgage worries.

This has led more than 140,000 households to go to the DirectGov website for advice - a third of whom have used it to develop personal action plans to tackle their financial worries, working out how to talk to their lender and what Government help they can benefit from.

Concerned homeowners can also call the National Debtline free on 0808 808 4000 for help and support.

And working with the Government, Citizens Advice offices across the country have run over 100 public events in the “hotspot areas”, so local people have been able to drop in for free mortgage help and advice, with displays and stalls set up everywhere from libraries and supermarkets to schools and hospitals – and even a local zoo.

But with the pressure set to remain on families, Mr Healey has confirmed that the Government will build on the success of this campaign and extend it through the year, with an additional £2.5million funding to advertise the mortgage help website and National Debtline’s free number, to encourage struggling homeowners to seek the help they need.