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New help for mortgage strugglers

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  • New help for mortgage strugglers

    Extended help for homeowners struggling to pay mortgages after losing their jobs has been introduced by the Government in a bid to slow spiralling repossessions.

    Thousands more will qualify for help with interest payments after the threshold for qualification was raised and the waiting period slashed by two thirds to 13 days.
    Prime Minister Gordon Brown promised to do everything possible to prevent people losing their homes to the recession - with experts predicting up to 75,000 repossessions this year.
    And he is beginning a week of efforts to combat rising unemployment by addressing business leaders at a meeting of the Regional Economic Council he set up to help co-ordinate action.
    The PM's claims that about 100,000 jobs will be created or protected by bringing forward £10 billion of public projects were welcomed by unions but dismissed as spin by the Tories.
    No details were available from Downing Street of where the new posts would be created or what proportion of the total were existing jobs that it calculated might otherwise be lost.
    The benefit changes, which come into force immediately, mean people with mortgages of up to £200,000 - double the previous cut off - will qualify for Support for Mortgage Interest (SMI).
    At present 230,000 households receive cash via SMI, available to those who are already receiving a means tested benefit, getting an average £40 a week.
    Work and Pensions Secretary James Purnell said: "We have changed the rules to make sure even more people can get help with their mortgage payments if they lose their job.
    "We have brought in changes as quickly as possible so people don't have to wait too long for this support. Every time someone loses their job it is a personal tragedy. Jobcentre Plus is on hand to help people get back to work as quickly as possible."

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