More families cling on to their homes
Reporter: Lobby Correspondent
Date published: 15 February 2010
THE number of families across Oldham faced with losing their homes is falling quicker than other parts of Greater Manchester.
Mortgage lenders launched 105 repossession claims — the first stage in taking back a property —across the borough between October and December last year, down 35 per cent on the same period in 2008.
Across Greater Manchester repossession claims fell by 31 per cent in the same period.
According to the Ministry of Justice figures, 550 families across Oldham had action started against them in January to December, 2009, down 31 per cent on 2008.
The figures do not reveal the actual number of evictions because even after a claim has been made, a person can still settle their debts and save their home and reach an agreement with the borrower.
Interest rates have remained at 0.5 per cent as the Bank of England tries to encourage more lending. People on variable mortgages would have seen their payments fall significantly.
The Commons Treasury Select Committee announced it will carry out an inquiry looking at households that were struggling with mortgage arrears and at threat from repossession.
It will focus on the way firms handle homeowners who are in difficulties, particularly specialist and second-charge lenders, as well as how effective the Financial Services Authority is at enforcing its requirements over the way borrowers should be treated.
The inquiry will also consider how effective Government schemes have been at helping people who have got into difficulties.
Justice Minister Bridget Prentice said: “The mortgage industry and the Government are working hard to minimise the threat of repossession.
“All alternatives must be investigated before considering court action, while advice desks within courts provide information on other options available to both lenders and borrowers.
“And we want to do even more. We have just published a consultation seeking views on restricting the ability of creditors to force people to sell their homes to pay for credit card debts.”
