Debt - Government to boost debt advice - 09/05/2008

With repossessions rising every month, the UK government has plans to offer free legal advice for those people in debt and facing their house being repossessed.

The new debt advice will offer extra training for local authority staff and free legal representation in English county courts.

The Government also aims to work with lenders to provide more information for borrowers facing trouble. Chancellor of the Exchequer Alistair Darling yesterday met mortgage lenders to discuss lending conditions.

The extra money to fund the debt advice service will come from a £10 million package of measures to support homeowners who may be facing difficulties with their mortgage. Details of the extra funding was announced today by Chancellor of the Exchequer, Alistair Darling and Housing Minister Caroline Flint.

The package includes measures to ensure that financial advice and support is available for borrowers who may need it and includes an additional £9 million extra funding for face-to-face debt advice provided by third sector partners including Citizens Advice Bureau.

Chancellor of the Exchequer, Alistair Darling said: "It is clear from speaking to consumer groups and the mortgage industry that borrowers may be concerned about the impact of the current market conditions on their mortgages.

That is why it is vital that the Government, working with industry, offers as much support as possible both directly to those people and to the consumer advice groups who can help them in their day-to-day lives."

The number of repossessions is likely to be higher in 2008 as a result of wider issues in the economy and the mortgage funding markets

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