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10 November 2009

It’s Your Home – Let’s keep it that way

Birmingham has been put at the heart of an intensive government drive to help local residents struggling to pay their mortgages so they can get a grip on their finances and save their homes.

As one of 22 ‘hotspots’ across Britain, homeowners in Birmingham face a higher risk of repossessions due to high levels of unemployment and numbers of court orders for repossession. Between April and June this year, there were 720 claims for repossession by lenders against homeowners in Birmingham.

That is why, as part of the national Mortgage Help campaign launched by Labour's Housing Minister John Healey in September, the government wants to make sure that homeowners know about the support available to them – from free debt advice and representation in court to help with mortgage interest payments and, for the most vulnerable households, the Mortgage Rescue Scheme.  

Free and independent advice
The government is investing £130m in providing free face-to-face debt advice services between 2006 and 2011. It's never too late to get help and advice – you can get help even if your case goes to court. Click here for details of free and independent advice agencies

Action on lenders and in the courts
The government has taken action so homeowners are treated fairly with tolerance and understanding from lenders for those in mortgage arrears. Lenders must prove they have exhausted every possible option before applying for a repossession order. Even on the day of a repossession hearing, around four in five repossessions can now be stopped if the households attend court and access free advice. Click here for more information

Government support schemes
You may be eligible for help through one of these three government schemes:

  • Mortgage Rescue Scheme – If you're facing repossession, want to stay in your home, but can't meet your mortgage payments you may be able to use the Mortgage Rescue Scheme.
  • Homeowners Mortgage Scheme – If your income has dropped but you expect your problems to be temporary, your lender might agree to enter you into the Homeowners Mortgage Support Scheme.
  • Support for Mortgage Interest – If you are unemployed or work fewer than 16 hours a week, you might be eligible for Support for Mortgage Interest.
  • Click here for more details of these schemes

The worst thing any struggling homeowner can do is bury their head in the sand. If you are concerned you can go to www.direct.gov.uk/mortgagehelp or call the National Debtline free on 0808 808 4000, to get impartial advice and find out the steps you can take to help keep your home.