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More help for families facing repossession
21/11/2008
The Scottish Government is extending the range of legal advice and support available across Scotland to families facing home repossession, it was announced today.
Deputy First Minister Nicola Sturgeon revealed that the Government will spend an additional £3 million over the next two years to provide more legal advice and representation for people facing repossession and other problems, such as debt.
The new money will be used to enhance existing services, such as the In-Court service that operates in Sheriff Courts, as well as services provided by local solicitors, advice agencies or solicitors employed by the Scottish Legal Aid Board.
Ms Sturgeon pointed to other action being taken by the Scottish Government to help families cope with the current financial downturn including:
- £382,000 to raise awareness through a TV and online campaign of the National Debtline - 0808 808 4000 - offering free, independent advice to help Scots facing debt problems.
- A new Home Owners Support Fund - which does not yet exist in other parts of the UK - with £25 million over two years for an improved Mortgage to Rent scheme, and a new Mortgage to Shared Equity option, which will be introduced in early 2009.
- Increasing the upper disposable income threshold for financial assistance for civil legal aid from £10,306 to £25,000.
- £40,000 for Shelter's helpline to cope with increasing numbers of calls.
- Urging UK Ministers to improve protection for homeowners at risk of unscrupulous landlords under 'sale and rent back' schemes, in line with recommendations made to the UK Government by the Office of Fair Trading following their detailed review.
Ms Sturgeon said:
"This Government will not stand idly by as Scottish families suffer from the effects of the economic downturn.
"We are acting quickly, taking firm action backed by significant funding, to protect those at risk of repossession from the trauma of losing their home.
"We are concentrating our efforts on taking action that will make a tangible difference to those facing repossession, such as extending and developing help with legal advice.
"Unlike other parts of the UK, we already have in place a comprehensive support package for homeowners facing repossession through the Mortgage to Rent scheme, and we are determined to do more.
"Today's decision to extend services to people in need of legal advice, and our existing commitment to introduce a new Mortgage to Shared Equity Scheme early in 2009, shows our continued determination to do all we can to assist those at risk of losing their homes."