Westminster Liberal Democrats back action to save homes from repossession

9.53.26pm BST (GMT +0100) Thu 4th Sep 2008

The LibDems are working to help those who face the trauma of repossession

Plans to save local residents faced with the trauma of home repossession have been backed by local Liberal Democrats.

With the credit crunch biting, many people are struggling to keep up with mortgage payments and so risk losing their homes. Liberal Democrat Shadow Chancellor Vince Cable MP launched plans on 27th August that could stop many people being thrown out of their homes because of the growing mortgage crisis.

Local Liberal Democrat campaigner Sue Baring said, "The fear of repossession is stalking our communities and Labour is not doing nearly enough to protect people from the worst effects of our current mortgage crisis.

"Individuals who lived through the last mortgage crisis under the Conservatives will never want to experience the same situation again. That is why I am pleased that Vince Cable is putting forward these plans."

The Liberal Democrat proposals include:

• allowing families struggling with repayments to sell all or part of the equity in their house and rent it back from a housing association or private firm to help keep them in their home

• letting councils and housing associations borrow money to buy up land and empty new homes for use as social housing

• giving guidelines to courts to allow homes to be repossessed only in extreme circumstances, making the mortgage lenders' voluntary code binding on all lenders

LibDem Shadow Chancellor Vince Cable MP said, "The Government seems obsessed with fighting a losing battle to artificially prop up the housing market, rather than finding ways to deal with its worst effects. Ministers must act to help the thousands of families struggling to keep a roof over their heads."