Criticism for lenders over repossessions

19/05/2009

Many mortgage lenders in the UK are not taking radical enough steps to cut down on repossessions numbers, according to charities.

The new study shows that other firms have responded well to government measures on the issue such as the Pre Action Protocol, however.

Citizens Advice, AdviceUK, the Money Advice Trust and Shelter polled their own advisors on repossessions - and found that 74 per cent agreed the protocol had improved matters.

Last week, the Council of Mortgage Lenders revealed that repossessions numbers over the first three months of 2009 were significantly above those recorded over the same period of 2008 - as the credit crunch negatively affects homeowners' ability to repay their mortgages.

The government's protocol, which came into effect last November, aims to limit this problem by encouraging lenders and borrowers to negotiate on repayments before the matter comes to court.

Steve Johnson, chief executive of AdviceUK, commented: "The government's initiatives aimed at helping homeowners who are experiencing financial difficulties are therefore very welcome.

"It is clear from the research, however, that some lenders could do a lot more to help borrowers remain in their homes."

Tags; Housing Debt and Bills, Young Family Finances, Retirement Money Problems, Credit Card Lifestyle,

• Share
• 
• 
• Store
• 
• Follow
•