Mortgage rescue plans due
The Government is due to unveil a mortgage rescue scheme to help people facing repossession stay in their homes.
Under the scheme, vulnerable families who are no longer able to keep up with their mortgage repayments will be offered the chance to sell their home and rent it back, or to enter into a shared equity or shared ownership scheme on the property.
The move is one of a series of measures being announced to help hard-pressed homeowners and those struggling to get on to the property ladder in the current economic climate.
The Government is also introducing a shared equity scheme for first-time buyers and it is boosting the money available for affordable housing schemes.
Full details of the package will be announced by Prime Minister Gordon Brown and Communities Secretary Hazel Blears.
The initiative is part of a wider series of announcements which will be made in due course to help alleviate the pressure on consumers and the industry.
Ministers hope they will help shift some of the focus away from what has been a dreadful summer for Labour, with talk of a threatened coup against the Prime Minister and accusations of “dithering” over issues such as stamp duty and a windfall tax on the energy companies.
On Monday Chancellor Alistair Darling was accused of “talking the economy down” as the pound slumped against the euro and dollar in the wake of his claim that Britain was facing the worst economic crisis for 60 years.
In a newspaper interview at the weekend, Mr Darling warned Britain’s economic downturn would be “more profound and long-lasting” than expected and conditions were “arguably the worst they’ve been in 60 years”.
Although he later insisted he was referring to international conditions and not the domestic situation, such negative comments will spark speculation he will have to slash his growth forecasts in the upcoming Budget.
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Tags: Mortgage