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Will changes to ISMI increase repossessions? Print E-mail

The latest repossession figures for Northern Ireland were released on Friday 13th August.  The figures show that home repossessions are down 3% on the same quarter in 2009.  While this news may be greeted with relief in some quarters, it's worth bearing in mind that Which? has reported that NI has seen the biggest jump in personal insolvencies, which are up 13.6%in April to June 2010 from the same period in 2009.

Housing Rights Service is worried that the proposed changes to Income Support for Mortgage Interest will have a huge impact on struggling homeowners' ability to meet their repayments.  We've worked out that some clients could receive up to £200 less a month. A lot of our clients are going to face difficulties adhering to agreements that form the basis of their Suspended Possession Orders.  We're supporting Minister Alex Attwood's recent call for the introduction of a Mortgage Rescue Scheme in Northern Ireland and we're eager to hear the views of other practitioners and policy makers.  Leave a comment and let us know if you think a storm is brewing!

 

Comments  

 
0 #4 2010-09-10 09:46
Standard & Poor's, the ratings agency, warned yesterday that the Government's planned spending cuts and tax rises may very well lead to a fresh wave of repossessions. You can read more at http://www.guardian.co.uk/business/2010/sep/09/standard-and-poors-repossessions-warning/
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0 #3 2010-09-07 10:26
Angela, further to my comment yesterday I have added a link below to the DWP's Equality Impact Assessment Support for Mortgage Interest, which may interest you:
http://www.dwp.gov.uk/docs/support-for-mortgage-interest.pdf
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0 #2 2010-09-06 09:47 Housing Rights Service
Hi Angela, thanks for your comments. As the Policy Officer for Financial Inclusion one of the pieces of work I hope to undertake this year is to review the policies and procedures of one private lender and secure positive change for clients in housing debt.

I will also be responding to the consultation paper ''21st Century Welfare'' from Department for Work and Pensions this month. Once published, you can read this response (and all our other policy papers) in the Policy Library of our site.
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0 #1 2010-09-02 14:08
Yes any decrease in income support help for people in arrears will definitely have a direct knock on affect on their ability to keep up with payments. I feel its also disgraceful that people who want to clear their arrears are being penalised by lenders preventing them to enter into new fixed rate deals for a further 12 months. If interest rates rise where does this leave people? PPI should ask Santander and other lenders for their policy on this. It really a good idea to keep people on variable rates??
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