Homeowners are given more breathing space

THE number of families in Oldham at risk of losing their homes is falling as interest rates continue to remain at an all-time low.

Government records show the number of possession claims made for failing to keep up with mortgage payments — the first step of the repossession process — fell by 37 per cent.

Between January and March, this year, 258 claims were started at county courts in Oldham, compared with 400 during the same period last year.

The figures, published by the Ministry of Justice, do not reveal the actual number of evictions because even after an order has been made, a person can still settle their debts, save their home and reach an agreement with the borrower.

Interest rates have been repeatedly slashed since October from 5 per cent to the current 0.5 per cent.

Oldham West and Royton MP Michael Meacher said: “Despite the welcomed drop, we need to do more so no one is at risk of losing their home.”

The Government said it has taken steps to ensure more free debt support is available with free legal representation in county courts for those at risk of repossession. A £20m prevention fund for councils to offer short-term loans to homeowners is also available.

Housing Minister Margaret Beckett said: “We are determined to do everything possible to help households facing difficulties with their mortgages.

“The action we have taken, together with the work of lenders to give borrowers more breathing space to help them find a solution, is having an impact on repossession numbers.”

Earlier this month, the Government was forced to admit the flagship £200m mortgage rescue scheme had failed to help a single family facing repossession anywhere in the region.

Separate figures from the Council of Mortgage Lenders show the number of homes repossessed across the UK rose to 12,800 in the first three months of the year.