CML calls for mortgage aid changes

Posted: 22 Apr 2008 14:20:20 GMT

The Council of Mortgage Lenders (CML) wants to see changes made to the state aid for people who fall behind with mortgage payments.

The Council of Mortgage Lenders (CML) wants to see changes made to the state aid for people who fall behind with mortgage payments.

Borrowers who find themselves unemployed and unable to keep up with repayments can get financial help from the government.

However, it can take around nine months for the help to come through and the CML pointed out that this is often too late to help a borrower avoid repossession.

The organisation's director general, Michael Coogan, told BBC Radio Four's 'Today' programme that changes need to be made.

"What we are looking for is a system that pays more quickly than the nine months," he explained.

"Also isn't capped at £100,000 mortgages because that is out of date, and also relates to the interest rate that the individual pays and not a standard interest rate as now.

"What we are looking for is a safety net that is better than the current one," added Mr Coogan.

© Houseladder Ltd