New Government Measures: Local authority or charity to take over home if owner can’t pay mortgage.

THE Cabinet has agreed a series of measures in a bid to keep people who are in mortgage arrears in their homes.

Details of the measures, released this afternoon, include legislative changes to allow the courts to review and overturn insolvency deals that have been rejected by the banks, but are seen as reasonable by a judge.The new change will weaken the much-criticised veto given to banks when the new Insolvency Service was set up.

It was also agreed to expand the mortgage-to-rent scheme, to allow more families to qualify. This sees a local authority or a charity take over a home when someone can no longer meet the mortgage payments. They pay rent instead.

The State’s Money Advice and Budgeting Service (MABS) is to be given a greater role in offering information, advice and assistance to borrowers in arrears.