REPOSSESION SHOULD ALWAYS BE LAST RESORT - WILLIAMS

9.11.43am GMT Mon 24th Nov 2008

Commenting today on the latest repossession orders made by Brecknock County Court, which showed a 30% increase in repossession orders for Quarters 1-3 in 2008 compared with the same period in 2007, Roger Williams, MP for Brecon and Radnorshire, has called for lenders to only use repossessions as a last resort.

Mr Williams said:

"These latest figures show a worrying trend of mortgage repossessions rising, both across the country and in Brecon and Radnorshire.

"Even with falling food and energy prices, it is clear that many families are struggling to make ends meet.

"The steep rise in the number of people in arrears makes it highly likely that a flood of repossessions is just around the corner.

"Although the increase in real numbers in Brecon and Radnorshire has been reasonably small when compared to other areas it will still be devastating news for those people who have been affected.

"In order to reduce the number of repossessions the Government should allow councils and housing associations to buy up land as well as empty homes to help replenish Britain's much depleted stock of social housing.

"The Government should also introduce regulated Mortgage Rescue Schemes. Under this arrangement, families struggling to pay their mortgage could sell part of the equity in their home and rent it back from a housing association or private firm

"It is vital that the Government urge banks to only use mortgage repossessions as a last resort and that all other options are considered before individuals and families are forced out of their properties."

NOTES:

The latest figures can be found at: http://www.justice.gov.uk/docs/stats-mortgage-landlord-q3-2008.pdf

Liberal Democrat plans to reduce repossessions include:

· Introducing regulated Mortgage Rescue Schemes to allow 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

Allowing councils and housing associations to borrow money to buy up land and empty new homes for use as social housing

Courts to be given guidelines to only allow homes to be repossessed in extreme circumstances, making the mortgage lenders' voluntary code binding on all lenders

These plans would be funded by using money already committed to social housing but currently unspent because of the collapse of new building.