Lifeline for people facing repossession
Wednesday, November 26th, 2008A new move to make major lenders wait at least three months before taking repossession action has been welcomed by the Royal Institution of Chartered Surveyors (Rics).
The pre-Budget report announced the creation of a new Lending Panel, whose major lender members must commit to the waiting period after an owner-occupier goes into arrears .
Noting that repossessions are set to go above 50,000 in 2009, Rics commented: “Measures to help prevent the trauma caused to families by repossession are essential.”
The pre-Budget report also announced help for struggling homeowners and more government funding for a free and impartial debt advice service.
Rics went on to note that as the economy declines and unemployment rises, more people may be at risk of failing to keep up their mortgage payments .
It also commented on the tax relieved savings system for first-time buyers trying to gather a deposit, supporting the announcement.
“This scheme should use the existing Isa structure allowing use of the full £7,200 limited and supported by an additional government contribution,” Rics said.