Wallasey MP makes mortgage support pledge to homeowners

Oct 22 2008 by Sue McCann, Wallasey News

WIRRAL homeowners who fall behind with their mortgage payments will receive Government help after 13 weeks – not nine months as before, according to Wallasey MP Angela Eagle.

As the credit crunch bites and national jobless figures face the biggest rise in 17 years, the authorities have intervened to ensure repossession is “the last resort” for banks.

Before Monday, a gap existed between the grace period allowed by mortgage lenders on defaulting payments and the availability of Government support.

The issue was raised last week, as Wirral hosted a major multi-agency conference on debt and loan sharks, called by Merseyside TUC and attended by trading standards, unions, banks and the Wallasey MP.

The Treasury Minister told the News: “If someone loses their job we’ll enable their mortgage interest to be paid from 13 weeks, not nine months, in recognition of the problem the gap could cause.

“We’ve also taken some stocks in banks, so we’re saying they have to treat their customers fairly, and that repossession has to be the last resort.

“There should be a process of coming to agreements, rescheduling, a range of things, before they even think about going for repossession.”

With Christmas around the corner the spectre of illegal money lending was discussed and an ‘invisible’ national loan shark helpline has been established, meaning the number will not show up on bills.

Ms Eagle revealed some of the efforts currently ongoing throughout the North West.

In the last year, 57 loan sharks have been identified, 24 investigations are ongoing, four legal proceedings have opened and two prosecutions have been successfully carried out.

More than £100,000 worth of loan shark books have been closed down, 45 witness statements have been taken and 23 victims helped, including 19 through credit unions and three through counselling, while one person has even been rehoused.

Nationally, sentences totalling over 33 years have been secured in the past 12 months.

Ms Eagle added: “It just shows how serious it can get.”

For confidential, independent advice on loan sharks, call 0300 555 2222 or for more general debt advice, call 0808 808 4000.