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Tuesday, 13th May 2008

Evening News / Sony Centre Reverse Auction

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Free legal help for borrowers facing repossession misery



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FAMILIES facing having their house repossessed because of the credit crunch will get free legal help to avoid losing their homes, the Government announced today.
Housing Minister Caroline Flint said the move was needed to prepare for mortgage difficulties when fixed-rate deals ended, leaving borrowers facing a payment hike.

But she played down comparisons with the recession of the early 1990s, when negative equity forced many out of their homes, insisting it was a precaution.

Free legal advice and representation at courts across the country is part of a package of measures being announced by Ms Flint today. There will also be more specialist debt advice training for Citizens Advice Bureau staff and local authorities, work with lenders to ensure they offer more help to those facing difficulties and strengthened help from the National Housing Advice Service.

Figures last week showed four out of ten mortgage lenders had so far failed to pass on last month's interest rate cut to borrowers.





The full article contains 170 words and appears in Edinburgh Evening News newspaper.
Page 1 of 1

  • Last Updated: 09 May 2008 11:16 AM
  • Source: Edinburgh Evening News
  • Location: Edinburgh
 
1

The ghost of Harry Lauder,

Edinburgh 09/05/2008 12:46:57
Whoever wrote this piece should be ashamed of themselves - the initiative applies only in England.
2

Alternative (High Octane) Fuel Head,

Edinburgh 09/05/2008 16:29:00
Harry,

This is the UK section of the paper. That means that stories related to the whole of the UK get published here. Likewise with the International section, you get to read stories from all over the world.

Sorry to rain on your parade but many people in Scotland are interested in what is going on in the rest of the UK, and the rest of the world.
3

A Friend of Fernando Poo,

, Newington 09/05/2008 16:40:30
This just prolongs the misery for the families who are waiting on these repossessed houses to go to auction.
4

Alternative (High Octane) Fuel Head,

Edinburgh 09/05/2008 16:48:31
"...the early 1990s, when negative equity forced many out of their homes..."

No it did not. People not being able to pay their mortgages forced them out of their homes. Negative equity had nothing whatsoever to do with that.

What having negative equity meant was that AFTER reposession, you wouldn't have enough collateral in your property to completely clear your mortgage, thereby leaving you still in debt. Provided you could keep up your mortgage repayments, there was no problem.
5

Seabhag,

Edinburgh 09/05/2008 17:45:38
I agree with The Ghost of Harry - I don't think he is saying that the News should not publish stuff about England; just that it should be making clear that the plans do not apply in Scotland. Otherwise some hard-pressed borrowers will be thinking that there is help here, when there is none.
6

John Blackley,

Florida 09/05/2008 17:56:31
This made me smile. "free legal help for families facing repossession" made me think of this:

Mum and dad strapped to chairs in a lawyer's office. Lawyer's very large chauffeur standing behind them and whacking each on the side of the head with a rolled-up newspaper in time with his chants of, "You will understand basic budgeting before you take on loans! You will not fall for deals that seem too good to be true because they probably are! You will not take financial advice from a person who benefits from putting you further in debt!"

And on, and on, and on.

 

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