Only Finance.com® - sercured homeowner loans

Loans - Government Failed to Help Those Struggling to Pay Homeowner Loans

There has been a dramatic increase in the number of people in Britain taking out homeowner loans since last year. MoneyExpert.com revealed recently that it has seen an 85% increase in applications for homeowner loans since October 2007.

With all these extra people flooding the homeowner loans market there has also been an increase in the number of people failing to keep up their repayments and facing the prospect of losing their home.

With the credit crunch upon us and record numbers of people expected to face financial difficulties the pressure is on for the government to direct some help towards the public rather than throwing money at the large financial institutions.

Many are expected to find themselves unable to keep up mortgage repayments or homeowner loan repayments and could face losing their house. With the rental market already flooded and few people currently taking on buy to let investments the country could be heading for a serious housing crisis.

Shelter, the housing charity hopes that meetings held today between lenders and government representatives will address the issue. Adam Sampson, chief executive for Shelter is unimpressed so far with the government’s approach to the problem:

“These meetings are a real opportunity for the Government and mortgage lenders to come to the rescue of millions of hard pressed homeowners, but yet again they have failed. What has been agreed will do nothing to stop ordinary people from losing their homes or facing repossession.

“In the nine months since the credit crunch began, the Government has bailed out Northern Rock and is now bailing out the banks with billions of pounds of taxpayers money, while ordinary people who are in desperate need continue to struggle to make ends meet.”

Carys Robshaw Shelter believes that a simple five point scheme which it has devised could avert further problems. The charity has called upon the government and mortgage lenders to take these steps, which include a national mortgage rescue scheme and immediate financial support for those facing repossession, reducing the time it takes for people to qualify for state help by six months and more powers to be given to courts insisting that repossession is only taken as a very last resort.

Mr Sampson says that these measures “would have saved tens of thousands of homeowners from being repossessed and should have been adopted at these various meetings.”

Going on to say that “Government plans to bail out the banks should help tackle problems in the mortgage lending market, as long as the banks act responsibly and pass the benefits on to borrowers.

"But the Government and mortgage lenders must now provide the same level of help for the thousands of homeowners currently facing the threat of repossession and homelessness.

"Shelter is urging the Government and Council of Mortgage Lenders to use their powers urgently to set out concrete plans on how they will help struggling families hold on to their homes and avoid the devastating effects of repossession."