CML reaffirms its commitment to work with government on minimising possessions

The Council of Mortgage Lenders is pleased that the Government has today acknowledged it has an increased role to play in helping lenders to minimise repossessions.

The home guarantee scheme proposed by Government is not for everyone. It will need careful development with lenders and the CML to ensure it is properly targeted to those borrowers committed to sustain their home ownership through short term periods of financial difficulty.

The CML favours simplicity, and looks forward to working with Government on how to refine this well-intentioned proposal for increased state support into a workable form.

It is not a charter for "won't pay" borrowers to avoid their responsibilities, but it will provide welcome reassurance to the vast majority of borrowers that the government and lenders are doing all they can, in partnership, to help those customers who "can't pay" due to a change in circumstances as we enter a recession.

CML director general Michael Coogan said:

"The Government's recognition that it needs to offer increased support to help keep more people in their homes is welcome, and we will work with Ministers to make sure the suggested scheme will help in practice.

In my speech at our annual conference yesterday, I emphasised our preference for changes to widen ISMI and wider ranging mortgage rescue proposals. We await further information on the proposed guarantee, as the devil will be in the detail."