WIREDGOV

The law will be changed to offer stronger safeguards to people unable to meet mortgage repayments, MSPs were told yesterday.

A Bill will be introduced in the Scottish Parliament in the autumn to build on the protection available through the Mortgage Rights (Scotland) Act 2001 in repossession cases.

And legal obligations will be imposed on lenders to show that they have considered every reasonable alternative to repossession.

The move follows recommendations from the independent Repossessions Working Group advising on further help to homeowners facing repossession.

Ms Sturgeon also revealed that an additional £250,000 will be granted by the Government to help agencies deliver quality debt advice to clients.

In the Scottish Parliament, Health Secretary Nicola Sturgeon said:

"We are committed to protecting Scottish families in the economic downturn and beyond. It is important we ensure families at risk of losing their homes are protected.

"That's why we are taking decisive action, backed by the full weight of the law, to tackle the scourge of repossessions.

"In England, the pre-action protocol, introduced by the judiciary, not the UK Government has been described by eminent legal experts as toothless.

"In contrast, the Scottish Government is offering something with real teeth - the full protection that only legislation offers."

The Repossessions Working Group was set up in January 2009 with membership drawn from lawyers, mortgage lenders, debt advisers, and consumer interests.

Other measures put in place to help those facing financial difficulties include:

• Increased funding for the Home Owners Support Fund to £35 million to help those who cannot access support anywhere else to stay in their homes through the Mortgage to Rent and Mortgage to Shared Equity schemes
• Increased funding for debt advice services, with an additional one million pounds to Citizens Advice for its face to face debt advice services
• £3 million for additional in court and other advice services and, from April, extended legal aid to a million more Scots
• £400,000 to raise awareness of help on offer through the National Debtline
• An additional £175,000 to expand Shelter's helpline and law advice centres

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