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Citizens Advice response to the mortgage rescue package announced by the Government today

2 September 2008

Citizens Advice Chief Executive David Harker said:

“We welcome the package of measures announced today, particularly the cut in the waiting time and increased capital limit for Income Support for Mortgage Interest, reforms to the safety net for homeowners which we have been urging for some time.

“These could be an effective way of keeping people who lose their jobs suddenly and have no savings to fall back on in their homes. Helping people stay in their homes will reduce the risk of social exclusion that arises when families have to enter temporary accommodation, with children having to change schools before eventual re-housing, possibly involving yet another change of school for the children.

“For these measures to work, lenders must play their part by showing forbearance, treating people in difficulties sympathetically and fairly, being willing to negotiate reasonable, affordable repayment arrangements with borrowers, and ensuring they take possession action only as a last resort. Bringing in a ‘pre-action protocol’ for mortgage arrears without delay would ensure that court action is only taken where all other options have failed and no agreement can be reached.”

Notes to editors

  1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more information in England and Wales see www.citizensadvice.org.uk
  2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality. For online advice and information see New windowwww.adviceguide.org.uk
  3. Citizens Advice Bureaux in England and Wales advised 2.1 million clients on 7.1 million problems from April 2010 to March 2011. For full 2010/2011 service statistics see: www.citizensadvice.org.uk/press_statistics
  4. Out of 22 national charities, the Citizens Advice service is ranked by the general public as being the most helpful, approachable, professional, informative, effective / cost effective, reputable and accountable. (nfpSynergy’s Brand Attributes survey, May 2010).
  5. Most Citizens Advice service staff are trained volunteers, working at around 3,300 service outlets across England and Wales.