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SUPPORT NEEDED FOR REPOSSESSED FAMILIES - HOLMES
December 12, 2007 12:00 AM
The Liberal Democrats have welcomed the Council of Mortgage Lenders' criticism of Conservative cuts in income support for mortgage-payers in 1995, but warned the group that it also needs to look at the reckless lending practices of its members.
Liberal Democrat Shadow Housing Minister, Paul Holmes MP said:
"The denunciation of Conservative housing policy by the Council of Mortgage Lenders is a timely and welcome reality check.
"Repossessions are expected to reach a staggering 45,000 this year even before nearly two million fixed rate mortgages are hiked upwards. Levels could soon be even higher than at the height of negative equity in the early 1990s, due to the previous Conservative government's severe reduction in Income Support for Mortgage Interest.
"Just over a fifth of borrowers have taken out mortgage protection insurance, not least because it is a poor product with high commissions and poor pay outs. Gordon Brown has done nothing to rectify this.
"But the CML needs to look too at the reckless lending practices of its members; Northern Rock is not the only bank with problems. Up to two thirds of repossessions are by sub prime lenders.
"Instead of dithering, Gordon Brown must act to regulate an overheated housing market and to tackle the massive shortage of housing, to buy and to rent, that he has presided over for 10 years."
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