Lifeline in sight for struggling families

Jan 3 2009 by Adrian Pearson, The Journal

STRUGGLING homeowners could be given up to s30,000 in mortgage help as one North council pushes ahead with plans to tackle rising repossession rates.

The Government is fast tracking a bid by North Tyneside council to set up a mortgage rescue scheme to help families struggling to pay their bills during the economic downturn. It comes amid worsening economic predictions in which treasurers at the council admit the upcoming recession and the economic cycle are a fact of life.

North Tyneside have been selected as one of a handful of local authorities to introduce the scheme before any national roll out, meaning families faced with being made homeless will have a chance to stay in their home.

Housing bosses at the council will not have to find any extra cash for the rescue scheme as the Government will fund the package from a s200m national pot.

This will allow council chiefs to loan up to s30,000 to help reduce mortgage repayments in exchange for shared equity.

Last night North Tynesides elected mayor John Harrison said: I believe its important that we try to protect vulnerable residents from homelessness during the global economic slowdown. Thats why weve ensured that North Tyneside Council will be among the very first areas in the country to take applications for the Governments mortgage rescue scheme.

Were already helping local people in other ways for example North Tyneside Warm Zone is making a real difference for people struggling with energy costs.

Mayor Harrisons plans follow moves by Newcastle Council to buy unsold properties and provide social housing.

North Tyneside councillors are hoping to help businesses ride out the worst of the recession by speeding up council payments and making it easier for local companies to bid for council contracts.

Frank Lott, the councils lead member for economic development, said the authority had made another bid to become one of the first councils in the country to return to housebuilding, a move which would see millions of pounds invested in the local economy.

As well as this, officers are bringing forward plans to spend s1m a year for the next five years training young adults for well-paid financial services and vacancies the council still expects to emerge.

Mr Lott said: What we have adopted is a simple way of looking at the economy.

If we just stand still we will be passed by, and so... we are bringing forward investment to ensure North Tyneside is well placed to prosper.

The councils cabinet is expected to approve the process on January 12.