British policymakers take possible steps to help nearly 75,000 owners who would face repossessions in the following year.
The UK government proposed a one billion pound scheme to help home owners facing repossessions, primarily targeting those who have a less income and those unemployed.
Depending on the deal, home owners with mortgages of up to £400,000 will be able to suspend interest payments for up to two years.
Michael Coogan, the director general of Council of Mortgages Lenders (CML) is delighted with the active participation of the government in repossessions. He said, “The government’s recognition that it needs to offer increased support to help keep more people in their homes is welcome, and we will work with ministers to make sure the suggested scheme will help in practice.”
However, Mr. Coogan reiterated that CML will be “devil in the details” as on how the scheme will work effectively.
The National Association of Estate Agents (NAEA) also applauded the government’s initiative to help the former home owners in facing repossessions.
Peter Bolton King, NAEA chief executive said, “The fact that eight major lenders are on board is an essential move in making this scheme viable. Finally, the banks and government are working together to offer real assistance to the home owner.”
However, Mr. King warned that the new lending scheme takes a crucial step – considering its massive coverage – if the housing market would once again start it over.