Government falls short for homeowners facing insurmountable debt

Posted 2007-11-27

A spokesperson for the Council of Mortgage Lenders, (CML) asserted, “The safety net for homeowners is still too patchy and piecemeal to be effective…

While the idea of a compulsory insurance scheme might seem superficially attractive, it would not deal with the range of uninsurable risks that people face.” 

Clearly, more effective assistance is needed from the government for homeowners facing financial hardships. According to Jackie Bennett, Head of Policy with the council, the government does too little to help property owners when they are faced with serious debt problems. 

The CML also revealed that tenants who rent their dwellings typically receive more help than the owners of property.

For those attempting to manage serious financial difficulties, a home loan could be the solution - even if a mortgage is already secured against the property. A popular lending product known as a “second charge” could be a homeowners’ best alternative; as it is provided with a fixed repayment period.

In any case, homeowners should diligently consider the alternatives available to them, rather than face possible eviction - and not count on the government for any further assistance which does not seem to be immediately forthcoming.

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