Time to bail out families

More people face having their home repossessed than in 1991

THE number of people who face losing their homes in Oldham has soared by 50 per cent compared with the last UK recession in 1991.

A repossession claim is the first stage of the process but does not mean someone will definitely lose their house because they can still settle their debts and reach an agreement with the borrower.

The Lib-Dems, who collated the figures, have called for wide-ranging action to support families during the credit crisis.

Leader Nick Clegg wants to force banks to offer free, independent advice before applying to repossess a home, and changing court guidelines to ensure repossessions are a last, rather than first, resort.

He said: “The Government has spent a huge amount of time, effort and money on bailing out the banks. It is now time to bail out Britain’s families.

“Repossessions are rocketing and millions of people simply do not know how they will pay for fuel this winter.

“The past few weeks have seen unprecedented levels of chaos in the international financial system. Ministers must act now to prevent this chaos hitting hard-pressed families.”

Oldham West MP Michael Meacher said he was deeply worried about the figures and called for an arrangement between Government and mortgage lenders to make sure people are not forced out of their homes.

He said: “The fact that in Oldham there is a significantly higher number of orders than in 1991 is very worrying. So we must redouble our efforts to demonstrate the need for a right for people to switch to just paying interest and not off the capital of the home. This would be until they are in a position again to pay off capital.

“We do not want people losing their homes. There would need to be a national arrangement between the Government and providers for this, but it is necessary.”