Many people who have mortgages in Carrick are concerned at the fall in house prices and the cost of mortgages.

Charlotte MacKenzie, the Labour candidate who wants to be MP for Truro and Falmouth, said:

“I would urge people to seek advice if like many they are finding it difficult to pay bills, worried about the fall in house prices, and facing reduced hours or possible job loss.

“Everybody knows that with incomes being lower and house prices previously soaring in Cornwall many families stretched their budget to afford to buy a home.

“It is really important the Government helps people keep the homes they have worked hard for and provides the support that is needed to weather this difficult period. That’s why I support the new Homeowner Mortgage Support Scheme which will enable households that experience a temporary loss of income as a result of the economic downturn to defer a proportion of the interest payments on their mortgage for up to two years.”

The Government will guarantee the deferred interests payments in return for banks’ participation in the scheme. The scheme was announced last week and is now being developed in detail, with a view to it being available to customers early in the New Year.

The country’s eight largest banks have already pledged that they will work with the Government to develop the scheme. The 8 largest lenders cover 70% of the mortgage market – HBOS, Nationwide, Abbey, Lloyds TSB, Northern Rock, Barclays, RBS, HSBC – have all agreed to support the new scheme.

Other help is also available to those in difficulty with mortgage payments:

1. The National Homelessness Advice Service (NHAS) to produce a consumer leaflet Worried about your mortgage? Get advice now.

2. The new mortgage pre-action protocol, introduced by the Civil Justice Council, came into effect last week. The new protocol makes clear that repossessions should be a last resort. Lenders must discuss and try to agree with borrowers alternatives to repossession. The Government has also expanded court advice services available to help those facing repossession.

3. A new mortgage rescue scheme targeted to help up to 6,000 households avoid the trauma of repossession over the next two years. Depending on their specific circumstances, eligible home owners will be offered either a shared equity option, enabling the household’s monthly mortgage payments to be reduced, or the option of Government mortgage to rent with the household remaining in the property as a tenant paying subsidised rent.

4. New support measures to help vulnerable homeowners meet their mortgage interest payments. The DWP announced it would be reforming Income Support for Mortgage Interest (SMI) by shortening the waiting period before SMI is paid from 39 weeks to 13 weeks for new working age claims. This will take effect from 5 January 2009. The capital limit for new working age claims will also increase to £175,000 from January 2009.