For mortgage holders and those looking to acquire a mortgage, the pre budget report held a few promises.
Alistair Darling announced that for those struggling to meet repayments, measures had been agreed with mortgage lenders to not pursue borrowers for the first three months, to give them more time. In addition, mortgage lenders have also promised to ensure they will look at sustainable solutions to the problem as well instead of taking repossession action where possible. This includes measures such as payment holidays, extending the term of the mortgage or reduced payments.
Those who are made redundant after New Year will be able to apply for help with their mortgages, such as a reduction in the waiting time before assistance will be offered with interest payments at a rate of 6 percent despite the recent bank rate fall for the next six months.
These measures should help to keep people with their existing mortgage where possible and help to stimulate the housing market again, and consequently the CeMAP market too.