State aid for mortgages is too slow says National Homebuyers

Many people find themselves in financial difficulties because it takes too long for government aid for mortgages to come through.

[UKPRwire, Mon Apr 28 2008] The Council of Mortgage Lenders (CML) wants to see changes made to the current system.

At present, someone who finds themselves unable to pay their mortgage due to unemployment must wait around nine months for any help from the government.

However, this is often too late as most people cannot fight to avoid repossession for so long.

One answer is to seek a fast property sale in order to cash in on the equity in your home.

CML director general Michael Coogan told BBC Radio Four that he wants to see changes made to the system of getting state aid out to those in need.

"When you have a large loan with a small amount of equity, the lender can't wait nine months for you to start making payments," he commented.

"It has to start taking possession procedures in that period, so you may have lost your home before the state support becomes possible.

"What we are looking for is a system that pays more quickly than the nine months," added Mr Coogan.

Fast property sale expert Julian King adds, "The current market condition, exacerbated by the collapse of Bear Sterns will continue to cause havoc in the UK property market.

"Homeowners who are finding it difficult to meet their mortgage payments will find themselves in bed with a less and less friendly lender who will be keen to recover amounts owed, whatever the effect to the homeowner.

"People facing repossession should be aware that mortgage rescue solutions like Sell and Rent Back are freely available. The consumer does, however, need to be cautious about which provider they choose".

Mr King is a director of National Homebuyers and is a founder member of APBA [Approved Property Buyers Association] which is calling for regulation in the quick sale and Sell and Rent Back industries to protect the consumer from smaller, less scruptulous operators.

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