Repossession advisers handed £20,000 boost

A HELP desk at Oldham County Court which provides vital support to householders facing the nightmare of repossession has been awarded extra Government money.

The Oldham desk is one of 76 court desks across the country which will take an equal share of £1.5 million, announced by Housing Minister John Healey.

Free on-the-day legal advice and representation for people facing repossession or eviction hearings is now available in all parts of England.

The Government says that this system has a proven track record of preventing immediate repossession action when people attend court.

With an extra £20,000 of funding coming to Oldham, staff will now be able to develop the service further.

Mr Healey said: “It is real backstop help for those closest to the point of losing their home.

“All’s not lost, even in court. In four out of five cases, the court desk advisers stop immediate repossession or eviction.

“Over the last year we’ve seen this work to help people keep their homes, so I made the decision to double the extra money to support this service to £1.5 million.”

While the additional cash will be a welcome relief for many, research shows that more people are seeking help before they get to the court stage and the Council of Mortgage Lenders (CML) recently revised their forecast for repossessions in 2009 downwards from 75,000 to 65,000.

Recent Ministry of Justice figures for the first three months of 2009 also show a 40 per cent drop in lenders bringing repossession claims to court.

Mr Healey added: “Court is close to, but not the end of the line, and the Government has put in place help at each step before that to help prevent repossession.

“More than 200,000 families each month are getting help with their mortgage interest or getting free Government-funded advice from their local council.

“I think these figures show that help we’re trying to give families at every step of the way is helping people avoid losing their home.

“But while the risk of repossession remains high and people fear for their homes we will do whatever we can to help. So if your case does get to court you should attend as help will be available.

“Our message is clear; people in difficulty should speak to their lender, as we have strengthened protections for homeowners. Lenders can only repossess homes as a last resort. If a solution can’t be found, then seek independent advice.”

Some of the services offered by the Government include:

::Support through the benefits system, Mortgage Rescue and Homeowners Mortgage Support.

::Support for Mortgage Interest (SMI) — 220,000 households benefited from SMI in 2007-2008. The Government expects up to 10,000 extra households to benefit from changes to SMI rules introduced in January.

::Householders can get debt advice – The Government will have invested over £130 million in free debt advice between 2006 and 2011.




::Financial Services Authority regulation of lenders and safeguards through the courts ensure that customers are treated fairly and repossession is only ever a last resort.