WORCESTER City Council is among 60 local authorities benefiting from new measures to help people at risk of losing their homes.

Chancellor Alistair Darling revealed the reforms on Monday including getting major lenders to wait at least three months before initiating repossession proceedings.

Your Worcester News reported earlier this week how more than 200 families had their homes repossessed in the first nine months of this year.

Mr Darling announced he was bringing forward the start date of the Mortgage Rescue scheme to Monday, December 1.

The scheme will allow eligible families a shared equity option allowing mortgage payments to be reduced or to sell their home to a housing association and remain in the property as a tenant.

The plans will also include better protection for families whose homes are at risk because of loans secured on their property.

More people with mortgages will be eligible for the Government’s Support for Mortgage Interest scheme with the qualifying capital limit doubling to £200,000 and the standard interest rate frozen at six per cent.

This means people on higher value loans and fixed interest rates will benefit.

Guidelines will also be revised on second charge lenders - companies other than the mortgage lender which loan money secured against a property - so families are treated more sympathetically.