Consumer group petitions government to help borrowers

A consumer rights group has called on the government to do more to help consumers survive the credit crunch.

Mortgages.co.uk claimed that the current financial crisis needs a different solution from those that have been put forward.

According to the group, the current plan of “part-nationalisation and special liquidity” for banks is doing little to help consumers facing personal debt in the UK.

Barry Summers, Director of Mortgages.co.uk, said: “In order to end the financial crisis, the government needs to offer protection to borrowers, rather than just bail out the banks. The Mortgages.co.uk proposal is for the government to offer financial assistance to homeowners, taking an equity stake in property where necessary to help the people that need it most.

“Rather than billions of pounds’ worth of banking debt being guaranteed by the treasury, the government should guarantee a similar level to replace mortgage debt.”

The group says that this plan would reduce the levels of repossessions and negative equity in the housing market, while also cutting mortgage debt.

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