Following recent meetings the government has stated that mortgage help will be available for homeowners that are struggling with their repayments and are in danger of losing their homes through repossession. However, despite these assurances the government has not disclosed the details of any plans that are being put in place to assist homeowners in this position. Over recent weeks the Chancellor, Alistair Darling, and the housing minister, Caroline Flint, have met up with key figures from the mortgage industry to discuss this problem.
After the meeting Caroline Flint stated: “We want to ensure there continues to be stability and fairness in the housing market, and that the support is in place for consumers who may need it right now.”
With many people due to come off cheap fixed rate mortgage over the course of this year there will be plenty of people in line for receiving this support, but there are concerns amongst rival party members with regards to what the support is and how it will be funded.
Vince Cable from the Liberal Democrats said that the government needed to be clearer about its intentions. He said: “One of the possibilities being mooted…is that the taxpayer could have been tapped for additional money to provide additional benefits to people who are in mortgage arrears. We really need to find out exactly what has been happening in these talks so that the government isn’t making any more concessions at the expense of the taxpayer.”
A spokesman from the Treasury added: “I think the government - now that the Bank of England has made this intervention to address the liquidity problem - will have to focus its attention on how to support the housing market.”
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