Press Release
Support For Homeowners
Tom Clarke MP has been campaigning for real help for mortgage holders during this credit crunch and is seeking to highlight the help available to keep people in their own homes if they fall on difficult times. The local MP has welcomed the recent announcement from Housing Minister Margaret Beckett.
The Homeowners Mortgage Support (HMS) will enable eligible borrowers who suffer a temporary loss of income to cut their mortgage interest payments for up to two years to help them get back on track with their finances.
Tom Clarke MP said:
“This excellent scheme will ensure repossession is always a last resort. As it happens I don’t believe anyone should lose their home in the present economic climate, however I want everyone in my constituency to be aware of what help is available”.
“The Government is committed to helping people through these difficult times. Losing your home is one of the most devastating things that can happen but I am determined that hard working people, who are facing difficulties such as temporary unemployment, are not left to fend for themselves”.
“This stands in contrast to the Tory plan to slash the communities’ budget - a cut which could have a devastating impact on those people.”
Mr Clarke explained details of the scheme when he said: “The major high street lenders will offer their customers Homeowners Mortgage Support. A number of other banks, building societies and specialist lenders have also confirmed today that they will offer their customers HMS as soon as possible. Lenders offering HMS will have the security of a Government guarantee if the borrower defaults. At the same time, four other high street lenders have all confirmed they will offer comparable arrangements to (HMS) to their customers, while opting not to take up the Government guarantee. Customers of these institutions experiencing a reduction in income and willing to make regular monthly payments will receive a similar level of support and be encouraged to seek independent money advice”.
The MP continued: “As a result lenders covering more than 80% of the mortgage market will now be providing enhanced support to their customers. Borrowers will receive independent money advice as part of these changes to help them make the right decisions for their circumstances. The Government will continue to work with smaller lenders to encourage as many as possible to offer HMS or equivalent support in the future. HMS does not provide consumers with a payment holiday. The mortgage interest payments that have been deferred will eventually have to be paid back. The enhanced support agreed by lenders today will be underpinned by FSA regulation and the Financial Services Ombudsman to ensure customers are treated fairly”.
Mr Clarke concluded: “Since the autumn, this Government has put in place a range of measures to give more protection to households at risk of repossession. This includes a new pre-court action protocol for all the main high street lenders, quicker and more extensive support to home owners who have lost their job, a scheme to enable the most vulnerable home owners to stay in their homes, and a major extension of free debt and legal advice”.
Housing Minister Margaret Beckett welcomed the support from Tom Clarke MP adding:
“We know that many families are worried about how to pay the mortgage right now, and we’re determined to ensure there is real help available for them.
“Today’s news is a result of excellent co-operation between Government, lenders, and money advice services.
“On top of the range of measures we’ve already put in place, this new support will help borrowers who just need a bit more time to get themselves back on their feet. This is in stark contrast to the early 1990s when there was nothing.
“The clear message to borrowers is to contact your lender straight away if you’re concerned about how to pay the mortgage as often a solution can be found.”