The Building Societies Association and the Council of Mortgage Lenders have called on the new government to make a clear commitment in the emergency Budget to continue to support home owners who are struggling to pay their mortgage.
The BSA and the CML, together with Citizens Advice and Shelter, have written to newly appointed chancellor George Osborne and business secretary Vince Cable to make a long-term commitment to those at risk of repossession.
The letter advises the newly formed government that although arrears and repossessions have fallen, this hinges on the low interest rate environment and the current public policy measures.
Adrian Coles, director-general of the BSA, says: “The current support schemes in place were implemented as temporary measures due to finish at the end of the year.
“With a new government in place there is a risk that the schemes could be pulled early, resulting in many home owners 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 home owners, their financial situation remains fragile and they are reliant on support from the government to help them remain in their home.”
He adds: “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.”