Repossession Archive
Posted on June 9th, 2008 in Repossession.
The rate at which repossession cases are being brought to courts across the country is soaring, it has been claimed.
According to members of the Transact network, courts in various regions of the UK have seen a dramatic increase in the number of repossession hearings since the start of this year as more and more families struggle to deal with their money problems.
Nazma Latif, coordinator of the Sheffield Law Centre’s Duty Scheme, has indicated that there was a 100 per cent rise in repossession cases brought to court during the first three months of this year.
"The court used to hold a session devoted to possession hearings once every three weeks, now they hold one every week," she explained.
"Where we would help two or three clients every session, we now help five or six."
The Council of Mortgage Lenders recently insisted that its members view repossession as a last resort and that borrowers with debt problems should contact their lender as soon as they can.
Posted on June 4th, 2008 in Repossession.
Repossession is only carried out as a last resort when borrowers are left with no other debt management option, the Council of Mortgage Lenders (CML) has claimed.
In a letter to the chancellor Alistair Darling recently, the CML said that the scale of repossessions in the UK is low and likely to remain so even as the economic outlook worsens.
The council suggested that its members do all they can to help families who are struggling to meet their repayment demands and made clear that borrowers can help themselves to avoid these kinds of money problems.
According to the CML, homeowners can help themselves keep hold of their property "by ensuring they make contact with their lender as soon as they realise they may face difficulties".
Homeowners and borrowers around the country can expect the Bank of England to cut the base rate of interest until August at the earliest, according to the recent assessment of Global Insight’s chief UK and European economist Howard Archer.
Posted on May 29th, 2008 in Repossession.
Millions of British homeowners are facing serious money problems as the economy slows and they are left unable to meet their mortgage repayment demands, according to recent research.
A study by the insurance firm Axa has suggested that there are more families vulnerable to having their home repossessed than was the case during the most recent housing crisis in the early 1990s.
Lending practices during the past 15 years have seen millions of Britons borrowing four or more times their own income levels and for many this will result in unmanageable debt problems if the country’s economic issues worsen.
Reflecting on the research, Axa’s director of protection marketing Iain Mallon said: "The economic growth experienced in the UK in the past 15 years has encouraged a short-term view of finances with a buy today and pay tomorrow attitude."
Last week, the mental health charity Mind insisted that lenders in the UK should take a more responsible approach when dealing with individuals who have serious debt management and money problems.
Posted on May 15th, 2008 in Repossession.
A study has been launched by the Office of Fair Trading (OFT) to establish how the sale and rent back industry is operating in the UK.
Sale and rent back enables homeowners with debt problems to sell their property and remain as a rent-paying occupant and the OFT is keen to find out if consumers are getting a fair deal under these circumstances.
The office has suggested that the study has become necessary because more and more families are facing money problems and mortgage debt woes as a result of the UK’s economic downturn.
"Sale and rent back schemes might be helpful for some consumers but there are a number of potential concerns including whether consumers in difficult circumstances are making well informed choices," said John Fingleton, the OFT’s chief executive.
Earlier this week, Citizens Advice urged money lenders to negotiate more readily with customers that are facing the prospect of repossession.
Posted on May 14th, 2008 in Repossession.
Families around the country are likely to be among those most at risk of having their home repossessed over the course of this year, according to one expert.
Paul Holmes, operations director of first-time buyer solutions firm Firstrung, is convinced that families with a new mortgage deal in place will be seriously stretched financially over the coming months.
Making a move from a three-bedroom to a four-bedroom property can result in a much heavier debt management burden that will be very difficult to carry in the current economic climate, Mr Holmes maintains.
"The real damage here in repossession territory unfortunately is in the family arena. That’s where the affordability is killing people," he said.
Recent first-time buyers by contrast should be able to deal with the downturn in the economy and the fall in property prices, according to Mr Holmes.
Figures from Credit Action have shown that the typical household debt management burden in the UK, including mortgage arrears, is worth in excess of £57,000.
