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Ministers called to introduce ‘safety net’ for homeowners following hike in debt costs
The UK Government was called on to bring a “safety net” for homeowners following a hike in household debt costs.
The Lib Dems said extra help needs to be given to first-time buyers, as forecasts from the Office for Budget Responsibility showed household debt servicing costs will increase by £33bn in two years.
Under the party’s proposal, an emergency mortgage support fund would offer payment instead of the current loans given out by the government’s Support for Mortgage Interest scheme, with waiting times cut down from 39 to 13 weeks.
“We need an emergency mortgage support fund to support struggling families, or we will see people forced to default and hand back the keys to their homes,” said Lib Dem leader Sir Ed Davey.