Homeowners 'continue to seek debt advice'
Homeowners 'continue to seek debt advice'
Tuesday 9th September 2008
The government last week unveiled a £200 million mortgage rescue package to support struggling homeowners.
However those that fall into negative equity, when the total outstanding loan exceeds the value of a property, will be exempt from the new measures.
This could leave many homeowners still unable to find mortgage finance and at risk of losing their homes.
Ian Boden-Smyth, PR spokesperson for the UK Insolvency Helpline, noted that the main problem is that the government are "not the ones lending the money".
He said: "The government are maybe doing too little, too late.
"We are still getting an enormous amount of mortgage applications and an enormous amount of people in debt, who just can't get mortgages."
A spokesperson for the department of Communities and Local Government explained in an article for the Times that the rescue package was not the only option for homeowners facing severe debt or even bankruptcy.
He added that others include "free legal representation at county courts, more free debt and advice, and on-going work with lenders to help ensure repossession is only ever a last resort".
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