Liberal Democrat leader Sir Ed Davey has renewed his calls for a £3bn emergency mortgage protection fund to protect homeowners.
Speaking on Radio 4’s Today programme Davey said: “We’ve already seen the number of people’s homes being repossessed going up massively – we’ve seen a surge by 50% in the latest quarter, and my worry is that we’re going to see lots of other families losing their homes, and we could be in a spiral of repossessions.
“The banks have got to play a bigger role. They need to step in and help people who are in trouble.
“But just as there was before, there needs to be more protection for those who are really suffering and the Government just aren’t doing that.”
He said the fund would be paid for by reversing tax cuts to banks. Davey also said he would like to see increased support for carers and renters.
When challenged on the fact that many under-40’s would be glad to see a house price correction Davey warned: “If we don’t tackle the mortgage crisis it will spiral downwards.”
Mark Mullen, chief executive of Atom Bank, agreed that help was needed: “I think they [homeowners] do need support and support can take many forms.
“What are banks doing on their saving rates, what are banks doing on a pre-delinquency basis, are they calling customers to make sure things are stable and they can continue to afford the loan? There are lots that banks can do”
