BSA: The Government and housing industry should consider new ways to keep people in their homes

BSA: The Government and housing industry should consider new ways to keep people in their homes

BSA: The Government and housing industry should consider new ways to keep people in their homes

A report, Long Term Safety Nets to Protect Mortgage Borrowers, published today for the Building Societies Association (BSA) explores alternative solutions that could help keep people in their homes if they fall into mortgage difficulties.

John Howard, a renowned broadcaster and former Chairman of the Financial Services Consumer Panel, is the author of the report commissioned by the BSA which takes a critical look at the often bewildering array of solutions to helping borrowers who struggle to meet their mortgage payments.

Paul Broadhead, Head of Mortgage Policy, BSA, said at the report’s launch, a roundtable attended by lenders, insurers, voluntary bodies, public sector organisations and Government:

“We believe that now is the time to carry out a holistic review of the safety nets available to protect borrowers in difficulties, from both a public and private perspective. I hope that the challenges we have identified today and the possible solutions provided can be the subject of detailed discussions amongst all stakeholders and Government departments.”

Possible solutions covered in the report, and debated at the launch, included forbearance, a more substantial mortgage rescue scheme, new forms of tenure and insurance compulsion, leading John Howard to conclude:

“…. there is no doubt that the costs of repossessions are very significant and that present arrangements are piecemeal and insufficient. Any new arrangements are likely to require some form of subsidy from the State and the rules in the changes on benefits would be a good opportunity to consider a new scheme, at a time when we could be on the verge of repossession figures rising again to record highs.”

Broadhead concluded “I believe that we all have a shared responsibility to create an improved system that works better together in the future. Not an easy task but without doubt an important one. Our debate today is the first step for industry in accepting the challenge and working together. The BSA will be publishing some of the key outcomes of today’s event in a forthcoming industry report.”

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Notes to Editors

1. A copy of the full report, Long Term Safety Nets to Protect Mortgage Borrowers, can be viewed on the BSA website www.bsa.org.uk

2. The Building Societies Association (BSA) represents mutual lenders and deposit takers in the UK including all 49 UK building societies. Mutual lenders and deposit takers have total assets of over £365 billion and, together with their subsidiaries, hold residential mortgages of almost £235 billion, 19% of the total outstanding in the UK. They hold more than £245 billion of retail deposits, accounting for 21% of all such deposits in the UK. Mutual deposit takers account for about 36% of cash ISA balances. They employ approximately 50,000 full and part-time staff and operate through approximately 2,000 branches.

3. Photographs of Paul Broadhead are available from the BSA press office, from the Association’s website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk

4. Contact – Fiona Cornes – fiona.cornes@bsa.org.uk / 020 7520 5926 or Paul Broadhead – paul.broadhead@bsa.org.uk / 020 7520 5917

Katie Errington
Policy and External Affairs Officer
Building Societies Association
6th Floor, York House
23 Kingsway
London
WC2B 6UJ

Tel: 020 7520 5904
Fax: 020 7240 5290
Email: katie.errington@bsa.org.uk
Web: www.bsa.org.uk