Homeowners 'need help' as repossessions soar
Published On 9 May 2008
Following today's announcement that there has been a rise in repossession orders, lenders are being urged to do more to help homeowners who are struggling with meeting mortgage payments.Statistics released today (May 9th) by the Ministry of Justice show that mortgage possession claims were 16 per cent higher than in the first quarter of 2007 and seven per cent higher than in the fourth quarter last year.
The National Consumer Council (NCC) has responded by suggesting that lenders should support homeowners struggling to meet their mortgage payments.
Nicola O'Reilly from the NCC, said: "Lenders must do more to help homeowners before they get into debt by targeting vulnerable customers, such as those coming off fixed-rate deals.
"We would like to see them offer a range of tailored solutions to help borrowers in difficulty, and not rush to use third party debt collection agencies or court action."
The NCC and the Financial Inclusion Centre will publish a report at the end of May outlining what lenders and the Financial Services Authority can do to ensure that customers in difficulty are treated fairly.
