Alex Salmond last night �signalled his government is �actively looking to �strengthen the law covering mortgage repossession to ensure Scottish home�owners get the same protection offered under new rules for England and Wales.

JULIA HORTON, MICHAEL SETTLE, and GRAEME SMITH

Alex Salmond last night signalled his government is actively looking to strengthen the law covering mortgage repossession to ensure Scottish homeowners get the same protection offered under new rules for England and Wales.

A spokesman for the First Minister was forced to deny this amounted to a U-turn after Nicola Sturgeon, Mr Salmond's deputy, had earlier yesterday insisted Scots already had better cover.

Her comments led Labour to accuse Ms Sturgeon of "astonishing complacency" about home repossessions while the Liberal Democrats denounced her stance as "bewildering and disappointing".

Legal experts warned it was "dangerously wrong" of Ms Sturgeon to claim existing Scottish legislation gave Scots greater protection than that which borrowers in England and Wales will now benefit from after the credit crisis spurred the UK Government to toughen its regulations this week.

After such a long period of surefootedness, the Scottish Government appeared to have finally wobbled yesterday after coming under intense pressure from opposition parties.

The row erupted just hours after The Herald reported that Scotland's borrowers would not be covered by new court protocols for England and Wales under which lenders will have to prove they have done everything possible to avoid struggling mortgage holders losing their homes.

Last night, First Minister Alex Salmond told The Herald: "We will be making announcements to make sure that Scotland is not in any way disadvantaged.

"First, people should understand what the position in Scotland is at the moment ... and if we need to take further action in terms of court protection we will look at that and do it as well. We can't use the same process as England and Wales because we have a different legal system but we will look at every option."

It was in marked contrast to the start of the day when Ms Sturgeon claimed the Mortgage Rights (Scotland) Act 2001 already provided unique statutory protection against repossession in the UK for Scots homeowners that was better than those new regulations.

A spokeswoman for the Scottish Government later repeated that assertion, claiming the act covered the element of the new rules "encouraging parties to exchange information early".

In addition, owners facing repossession orders can use the act to apply for a stay of execution from the sheriff, who was expected to "exercise their discretion" in the current climate, taking account of owners' circumstances and action taken by the lender.

But Ms Sturgeon's stance was widely derided as inaccurate, confusing and extraordinary.

Mike Dailly, principal solicitor at the Glasgow-based Govan Law Centre (GLC), said: "The Cabinet Secretary's belief that Scottish homeowners are better protected than in England is dangerously wrong and will leave Scottish households exposed to repossession and homelessness during the credit crisis and recession.

"The Scottish Government need to act immediately to protect Scottish households ... GLC's defended mortgage repossession casework - across Glasgow, East Renfrewshire and East Dunbartonshire - provides irrefutable evidence that the Scottish system has major deficiencies which place Scottish households at risk of repossession and homelessness during the credit crunch."

Those deficiencies included legal aid, which few borrowers fighting arrears cases in Scotland receive. Yet, thanks to recent moves by the UK Government free legal representation is automatically provided for borrowers in England and Wales.

George Clark, partner at Morton Fraser Solicitors, which has offices in Edinburgh, Glasgow and London, agreed that Scottish borrowers were now worse off than those in England and Wales.

He said: "Scottish borrowers were in a better position until this government initiative down south, but not now because in Scotland it protection still depends on the borrower asking.

"Scottish lenders don't have to demonstrate they have done everything possible to avoid repossession, they just have to demonstrate the debt so at the end of the day it's up to the homeowner to act, probably through a court ...and if you are many thousands in arrears you wont be able to afford to pay for a lawyer."

LibDem housing spokesman Ross Finnie attacked Ms Sturgeon's response. He said: "The Health Secretary is wrong to say Scottish homeowners are adequately protected and her relaxed attitude is bewildering and disappointing.

"It's vital that an additional clause, to ensure repossession is a last resort after every other possible route has been explored, is enshrined in law."

Pressure mounted on the SNP yesterday as the dispute reached the House of Commons where Anne McGuire, Labour MP for Stirling, lodged a parliamentary motion calling for the Scottish Government to be encouraged to follow Westminster's lead.

She said: "Ordinary families in Scotland will be shocked by the Scottish Government's breathtaking complacency. Nicola Sturgeon's comments show just how out of touch she is. The response of the SNP is to do nothing."

Jim Sheridan, Labour MP for Paisley and Renfrewshire North, also raised the issue during Commons Business Questions, telling Chris Bryant, deputy leader of the House: "As I understand it, these welcome measures do not apply to Scotland and given that the whole country is experiencing difficulty during this economic downturn, could he suggest what support, if any, to the Scottish people or indeed what the Scottish Parliament could do to help them."

Mr Bryant replied by telling MPs it would be "extraordinary" if the same rules governing repossessions were not to apply in Scotland.