Oldham’s homes threat eases

The number of families threatened with losing their home in Oldham has fallen — but risen across Greater Manchester.

The Ministry of Justice records show mortgage lenders launched 175 repossession claims — the first stage of taking back a property — across the borough between January and the end of March, this year.

It means there was a 12 per cent reduction in claims across Oldham on the comparable three months last year — but a 4 per cent hike across the region.

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.

Housing Minister Grant Shapps has called on struggling homeowners to seek early help if they are at risk of repossession.

He said there is help available, and that repossession should only ever be the very last resort.

Mr Shapps added: “No-one in financial difficulty should be embarrassed to seek help if they need it.

“The worst thing for any struggling homeowner to do is to bury their heads in the sand hoping the problem will go away.

“The recession has brought difficult times for lots of people. The most effective thing anyone with money worries can do is to seek early advice and speak to their lender to avoid losing their home.

“For our part, the most important thing that Ministers in Government can do is to continue our efforts to tackle the record deficit to avoid the need for rapid increases in interest rates and keep the pressure off already-stretched family budgets.”

Interest rates have remained at a record low of 0.5 per cent for two years as the Bank of England tries to encourage more lending. People on variable mortgages have seen their payments fall significantly. But the Bank of England’s latest Quarterly Inflation Report predicts inflation will hit 5 per cent by the end of the year and that interest rates may have to rise as a result.

Critics also fear the situation will get worse as the full impact of government spending cuts takes effect.

Across England and Wales, 19,608 families were threatened with repossession in the three months — up 4 per cent.

Mortgage lenders now have a duty to inform the local authority as soon as action is being taken in the area so council chiefs can ensure residents are getting the appropriate help and advice.