Brown defends under-fire mortgage plan

21 February 2009

Prime Minister Gordon Brown said on Friday that the new measures being introduced by his government would help to save people from losing their homes, as repossession has surged to a 12-year high in the UK.

"We're going to do everything we can to stop repossessions," he said on a visit to his Fife constituency, on the same day that new figures from the Council of Mortgage Lenders showed the number of UK homes repossessed last year jumped by 54 per cent to 40,000.

The prime minister said, "We're signing agreements with the building societies and the banks that there is a moratorium on repossessions for people with these banks and building societies. And we're introducing measures in the next few days that will be able to underpin people trying to get their mortgage terms of repayment changed."

His comment came as it was announced that a government scheme to help people who lose some or all of their income stay in their home will not be available until April.

The Homeowners Mortgage Support Scheme was announced in December last year, but the government only published final details of the scheme's design on Friday. Under the scheme, homeowners who lose some or all of their income will be able to defer up to 70 per cent of their mortgage interest payments for up to two years.

The scheme was delayed due to protracted negotiations with lenders over how it will work. It remains under sharp criticism, as there is confusion over the details. The Tories are accusing Brown of raising false hopes.