MP fights for new laws to stop unfair evictions
A GLASGOW MP wants to give courts more powers to stop people becoming homeless due to mortgage arrears.
Govan MP Mohammad Sarwar has introduced a Bill in the Commons which would let courts vary loan interest rates if they thinks they are too high.
His Bill would also let courts delay repossessions if people other than the owner or legal tenant, such as grown-up children or other relatives, would be made homeless.
The MP said there had been a big rise in the number of people going to him and local advice centres desperately seeking help to avoid repossession.
He pointed out many repossessions were instigated not by banks or building societies but by loan firms which offer help to people in financial trouble.
And his Bill, which is going through parliament, would let courts look at these loan agreements and lower the interest paid if it was thought to be excessive.
The Bill would also give other people living in the property the opportunity to ask the court to suspend repossession orders to allow time make arrangements.
Mr Sarwar believes his Prevention of Homelessness Bill would increase the chances of people keeping their homes.
He said: "Anyone who lives in a home should be able to ask the courts to suspend repossession and eviction orders until they find alternative accommodation. Currently, only the legal tenant or owner has any rights.
"Many people borrow consolidated loans with high rates of interest against their home to settle other debts. When family income drops, through illness or changes in employment, it is often a failure to meet those loan payments that leads to repossession and homelessness.
"I want to see courts having the power to cut interest on such loans to no less than the UK average in an effort to keep people in their homes when they have difficulty paying."
Mr Sarwar teamed up with staff at Govan Law Centre to draw up the Bill, which is due for its next reading in parliament next month.
Mike Dailly, of Govan Law Centre, said it had dozens of cases on its books of people experiencing mortgage problems.
He added: "We have a huge problem across Glasgow. We have lots of cases across the city of homeowners trying to stop repossession.
"Many are in work paying large consolidated loans and interest rates are very high."
A spokesman for the Council of Mortgage Lenders said: "This would cause lenders concern because ultimately the property provides security for the loan.
"And the final recourse is the recovery of the property. Clearly there would be concern over barriers to the process."
Leeana's two years of anguish
LEEANA O'Connor feared her home would be repossessed for more than two years.
She fell into mortgage arrears though illness and says bad advice nearly cost her her first home, a three-bedroomed house.
The 23-year-old customer service assistant from Easterhouse said she was charged thousands of pounds extra on top of the arrears and would have waited even longer for state assistance.
She said: "I didn't realise until I tried to claim that I didn't have payment protection insurance for the first year of illness.
"I thought I would lose the house and I am still left with extra costs to pay off.
"It took two-and-a-half years to sort out. I had letters and visits from sheriff officers with notices of court proceedings.
"The social security department told me I would have to wait another six months before I could qualify for help and the interest was mounting.
"I ended up with almost £3000 of charges added on to my mortgage and was charged £250 for one letter.
"This idea would have helped if it meant I was able to get benefits to help with the mortgage sooner.
"I also could have applied for help with the charges."
Leeana has now had the threat of repossession lifted with the help of advice from the Govan Law Centre and has taken out new payment protection to cover her in the event of illness.