Friday 20th of March 2009
The government has been urged to introduce a ban on mortgages offering more than 100 per cent of a property’s value.
Consumer campaign group Which? made the call following a poll showing that over three-quarters of people would support such a move.
The body explained that measures are urgently needed to support those who are facing negative equity as a result of such deals.
And with its survey also showing that 43 per cent of households with a joint income are worried about paying mortgages if the main earner lost their job, a growing number of people could find themselves needing help such as an individual voluntary arrangement.
Commenting on the need for over 100 per cent mortgages to be stopped, personal finance campaigner at Which? Doug Taylor said: "With people spending sleepless nights worrying about job losses and repossessions, the industry needs to demonstrate that it wants to win back the trust of the British public by fully embracing government initiatives."
Earlier this week, prime minister Gordon Brown announced a range of measures to help those struggling with debt.
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- Seeking IVA advice now could prepare for the future
