Friday, August 29, 2008

Blaydon Liberal Democrats back action to save homes from repossession

PLANS that could save many residents of Blaydon constituency from the trauma of home repossession have been backed by local Liberal Democrats. With the credit crunch biting, many households are struggling to keep up mortgage payments and risk losing their homes.

Liberal Democrat Shadow Chancellor Vince Cable MP launched the plans on 27th August that could stop many people being thrown out of their homes because of the growing mortgage crisis.

Councillor Peter Maughan, Parliamentary Spokesman for Blaydon, said, “The fear of repossession is stalking communities in in Blaydon constituencyand the Labour government is not doing enough to protect people from the worst effects of the mortgage crisis.

“People who lived through the last mortgage crisis under the Conservatives will never want to experience the same situation again. That is why I am pleased that Vince Cable MP is putting forward these plans.”

The Liberal Democrat proposals include:

· allowing families struggling with repayments to sell all or part of the equity in their house and rent it back from a housing association or private firm to help keep them in their home;
· letting councils and housing associations borrow money to buy up land and empty new homes for use as social housing ;
· giving guidelines to courts to allow homes to be repossessed only in extreme circumstances, making the mortgage lenders’ voluntary code binding on all lenders.

Vince Cable MP said, “The Government seems obsessed with fighting a losing battle to artificially prop up the housing market, rather than finding ways to deal with its worst effects. Ministers must act to help the thousands of families struggling to keep a roof over their heads.”

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