Extra home loans help outlined in Budget

Additional help for those struggling with mortgages, as well as plans to inject finance into the home loans sector, have been unveiled by chancellor Alistair Darling.

In yesterday’s Budget address to the House of Commons, he pledged to tackle repossession brought about as a result of the economic downturn.

“One of the biggest fears when people lose their jobs is that they and their family will also lose their homes,” Mr Darling remarked.

He announced that the Support for Mortgage Interest scheme – which helps borrowers who are out of work with repayments ñ will be extended to run until the end of the year.

And he revealed that government-backed mortgage securities will be provided in order to boost the flow of funds into the financial sector.

Fionnuala Earley, chief economist for Nationwide, noted that the move should “add some liquidity to the market”.

But alone it will only make a “limited difference” to lending activity, she added.

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