Plea to end mortgage misery

MAJOR speech . . . Vince Cable, centre with, from left, Keith Begley (chairman of the Lib-Dems Oldham East and Saddleworth constituency party), Elwyn Watkins (prospective Parliamentary candidate), Councillor Jackie Stanton (Oldham Council deputy leader) and Councillor John McCann (cabinet member housing).

MORTGAGE lenders have come under attack for being too quick to repossess homes.

The Lib-Dems’ Shadow Chancellor Vince Cable chose Oldham, one of only two places he is visiting in the north this autumn, to unveil his proposals to end the region’s mortgage misery.

He called for councils to come to the defence of struggling homeowners as he spoke on the current economic turmoil.

The party’s deputy leader said: “It is scandalous that unscrupulous lenders are forcing people from their homes without giving them a chance to fix their financial situation.

“Councils should set up formal forums with mortgage lenders in their area to pressurise lenders to stop using repossession as a first step rather than a last resort for people in mortgage difficulties.”

He said mortgage possession claims issued by County Courts in the North-West have doubled in the last five years, with over 1,000 claims issued in Oldham, Manchester, Salford, St Helens and Blackpool last year.

He added: “These shocking figures show that councils urgently need to find a way to work more closely with mortgage lenders to stem the tide of mortgage possession claims being issued by their local county courts. This North-West mortgage misery must now end.”

Dr Cable is greatly respected for his grasp of economics and his visit to the Oldham and District Liberal Democrat’s annual dinner at the White Hart, Lydgate, yesterday, made it the best attended in years.

People had to be turned away from the opportunity to hear his views on the credit crunch and local Lib-Dem leaders said they were honoured he had travelled hundreds of miles to be there.

The Twickenham MP added: “The Government has now stepped in to invest in banks and building societies, making money available to support the housing market, as I called for some time ago.

“The Council of Mortgage Lenders’ Code of Conduct must be made law to ensure that repossession is only ever a last resort.”

Dr Cable met with senior Oldham Liberal Democrat Councillors who told him of measures they have taken in the borough, since taking control of the council, to support the housing market.

These include expanding the equity loan scheme to bring empty houses back into use, using capital receipts to buy and rent back former buy-to-let houses and a publicity campaign to warn about the dangers of selling homes to predatory private investors.