The US Federal Housing Finance Agency announced today that more home owners with 'underwater', or negative equity, mortgages will now be able to re-finance their loans.

This move, reported by The Washington Post, was originally set-up in 2009 but it has not helped as many people as originally planned.

The scheme was only available to those with mortgages up to 25% larger than the value of their home, but this has now been uncapped.

although only available to those holding mortgages backed by Freddie Mac or Fannie Mae, it is thought that up to a million people will take advantage of this new upgrade to the programme.

The aim of this is is to reduce these homeowners' monthly bills, which in turn will prevent foreclosures and also free up cash to be spent on the high street aiding an economic recovery.

Well I hope it will prevent repossessions, but I also hope that any money saved will be ploughed into repaying the mortgage faster, that would be a very sensible thing to recommend.

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