Government takes aim on mortgage repossessions

Housing repossessions could be staved off more easily if Labour's latest plans are anything to go by.

John Healey, the Housing Minister, announced to the Labour Party conference an intention to introduce new rules aimed at protecting homeowners struggling with their mortgage repayments.

Under the plan lenders will have to tell local councils when they file forrepossession action in the courts. The idea is that councils will then intervene to offer advice orhelp with special rescue schemes.

We don't know what the rescue schemes are yet, nor were any figures given on how many repossessions this plan seeks to prevent.  In these cases, only last-mnute action is prvided, whereas we feel that there's plenty that could be done before things get to repossession.  How about notifying the councils sooner - for example, as soon as a default is recorded?

Nevertheless, with over 100,000 possession orders made last year, it's good that moves are being made to offer assistance in these cases.