Government To Investigate Homeowner Loan Arrears
The effects of the credit crunch and the current economic slowdown have had a huge impact on many people living in the UK, particularly those with homeowner loans and mortgages secured on their properties.
Financial problems, often due to circumstances which have been beyond and individual’s control have led to a large increase in secured loan arrears and repossession cases across the country. Even for those people not facing financial problems, it has become extremely difficult to obtain a new loan, as lenders restrict their criteria due to a lack of available funding.
A Treasury Committee has now been set up which has been tasked with the job of conducting an inquiry into mortgage and secured loan arrears, as well as those individuals facing or who have already experienced repossession of their home. The inquiry will also look at the availability of new funding through homeowner loans and mortgages, with particular reference to the difficulties being faced by first time buyers looking for their first loan.
The committee is now asking for assistance in compiling the necessary evidence for the inquiry, from those people who have had experience in this area. The evidence must be in writing and contain contact details for the individual and should be e mailed to treascom@parliment.uk.
The inquiry will look at the number and level of loan arrears cases along with future forecasts and also repossession cases. It will also take a close look at lenders to assess how they have handled arrears and repossession cases and whether or not they have adhered to FSA guidelines and if those guidelines have actually been effective. Other areas of the inquiry will include concerns over sale and rent back schemes, how government assistance has helped those in difficulty with their loans and the effect of the credit crunch on the availability of new homeowner loans.
For more information go to www.parliment.uk/parlimentary_committees/witness.cfm.
