Council bid to ease mortgage worries

12:00pm Saturday 1st November 2008

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AN INCREASE in house repossessions and personal debt has prompted Basingstoke and Deane Borough Council to step in with extra advice for residents under threat.

A specialist mortgage arrears adviser offering debt and money advice will be employed by the borough council, which has reported a steady increase in inquiries from people concerned about mortgage arrears since last year.

National figures show a 16 per cent rise in repossessions in the first quarter of 2008, compared with last year, due to the rising cost of food, fuel and home loan repayments.

The council is currently working with local housing providers and mortgage lenders to recruit someone suitable to the role, which will include developing homelessness prevention and mortgage rescue packages for residents who are in need.

Councillor Andrew Finney, leader of the council, said: “Residents are likely to be feeling the pinch as the credit crunch bites harder.

“We want to do all we can to help and support them so that they do not get into crisis and face repossession and the misery of being in debt.

“With Christmas and high winter fuel bills approaching, we know that things will get worse and we want to act now. We are working closely with housing associations and voluntary groups.

“The message is don’t bury your head in the sand if you get into mortgage arrears. There are rescue packages available so you should ask for help.”

The council is also looking into establishing a Basingstoke branch of the Hampshire Credit Union, a non-profit-making financial organisation that would offer ethical, low-cost loans to people who may not otherwise be able to get credit. A Basingstoke Savers’ Project under consideration would also offer savings plans for local people.

Residents concerned they are getting into arrears should call the council’s housing advice team on 01256 845250.