Media and Public Affairs
Press release
BSA advises new Government to introduce long term support for those at risk of repossession
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Contact: Rachel Wylie Date: 13 May 2010 |
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The BSA, CML, Citizens Advice and Shelter and have today written to the new Chancellor George Osborne and the new Business Secretary Vince Cable, urging the Government to make a clear commitment in its first budget to continue to support homeowners in financial difficulty.
The letter advises that the modest reduction in mortgage arrears and repossessions is deeply dependent on low interest rates and the public policy measures that currently apply. The new Government needs to make a long term commitment to help those borrowers in most need.
Adrian Coles, Director General of the BSA said
"The current support schemes in place were implemented as temporary measures due to finish at the end of the year. Furthermore, with a new Government in place, there is a risk that the schemes could be pulled early, resulting in many homeowners being left with no safety net.
Building societies and mutual lenders are committed to working closely with borrowers in financial difficulty to help resolve their financial situation. However, for many homeowners, their financial situation remains fragile and they are reliant on support from the Government to help them remain in their home.
We believe it is important that these measures remain in place to help those at risk of repossession and that there is a real need to commence work on implementing a long term support programme."
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The Building Societies Association (BSA) represents mutual lenders and deposit takers in the UK including all 51 UK building societies. Mutual lenders and deposit takers have total assets of almost £375 billion and, together with their subsidiaries, hold residential mortgages of almost £240 billion, 19% of the total outstanding in the UK. They hold over £245 billion of retail deposits, accounting for just under 22% 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.
Photographs of Adrian Coles are available from the BSA press office, or from the Association's website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk
A copy of the full letter can be obtained from katie.wise@bsa.org.uk.
