Safety nets needed for mortgage customers - Cable

7.01.47pm BST (GMT +0100) Thu 28th Jul 2005

Commenting on data released today by the Department for Constitutional Affairs and from the Council of Mortgage Lenders, which show a sharp rise in repossessions, Liberal Democrat Shadow Chancellor, Vince Cable MP said:

"Although the repossession figures may be low by historical standards, they point to a worrying trend in the housing market.

"The rise in mortgage arrears also points to a rather gloomy outlook for the market, and looks set to compound the recent rise in repossessions.

"Mortgage lenders need to develop adequate safety nets for their customers so that when repossession looks likely people are not just pushed out. This would be for the benefit of all involved including the banks.

"Banks and building societies need to ensure that when individuals take out mortgages they are fully aware of the risks that are involved and the relevant insurance products.

"Mortgage payment protection insurance should be brought within the remit of the FSA. This market is currently expensive, inadequate and inefficient. This would be the first step to a more competitive market."