Petition urges Government to bail out mortgage debts

30 October 2008

A financial services firm has launched a petition calling for the Government to help pay off personal mortgage debt, rather than pumping billions of pounds into banks.

Financial Services Net has launched the ‘stop meltdown’ petition, which claims that improving banks’ liquidity directly so they can lend more money is not the solution to the financial crisis. Instead, the firm proposes a scheme in which the Government helps homeowners to repay mortgage debt and takes an equity stake in the property.

“As well as giving liquidity to the banks, this provides genuine help to consumers, lowering arrears and repossessions,” the petition reads. “This solution simultaneously keeps inflation in check, lowers the burden on employers and keeps unemployment and benefits in check.”

A spokesperson for debt management company Gregory Pennington said: “We have seen increasing numbers of homeowners who can no longer afford their mortgage payments in recent months, and any scheme to help this situation will be welcomed by those involved.

“As always, we advise anyone struggling with debt to seek expert debt advice as soon as possible.”

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Gregory Pennington offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

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Gregory Pennington are founder members of DEMSA (Debt Managers Standards Association).

DEMSA are the first trade body within the finance industry to successfully secure approval for its code of practice under the OFT Consumer Codes Approval Scheme (CCAS).