Mortgage lenders repossess 'too quickly'

15/12/2009

People with serious debt problems'>debt problems are having their homes repossessed before all other options are exhausted, a new report has found.

The study, from Advice UK, Citizens Advice and Shelter, found that in a third of repossession cases, lenders had failed to comply with the 'pre-action protocol', which was introduced to limit the number of people losing their homes.

Despite this, lenders were only brought to task by judges in a handful of cases.

Redundancy and other loss of income were cited as the most common reasons for falling into mortgage arrears'>mortgage arrears.

With unemployment expected to grow further, and over half of those avoiding repossession expecting further problems, the charities are concerned that the problem could worsen.

As a result, they have called on lenders to start fulfilling their obligation to consumers.

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