Homewoners Facing Repossessions Need Mortgage Advice

Thu, 07 Jul 2011

A leading banker has stated that homeowners who lag behind with their mortgage repayments ought not be helped

However, charities who help householders facing repossessions and put their lives back on track state that such thinking is blinkered and could mean turmoil for the social housing market as thousands and see many people become homeless.

There is considerable concern that as more homes are repossessed, a surge of properties for sale in the present stagnant market is going to lead to a return to the nadir of the late 80s, with borrowers stuck in ­negative equity hell due to their with homes being worth less than their outstanding mortgages .

Richard Banks, who managed the toxic debts which brought down Northern Rock, has stated that the Labour ­government’s pleas for mortgage lenders to maintain families in their homes is forcing some homeowners into further debt and that a firm but fair approach is needed for customers in arrears or those unable to meet their mortgage ­repayments .

Shelter chief executive Campbell Robb said that it is well known fact that the impact of increased cost of living, high inflation and ­stagnant wages has been dire for some. It just takes something like losing your job to push a homeowner over the edge into serious debt, repossession and possibly ­homelessness .

The majority of cases benefit from mortgage arrears advice, debt advice, getting in touch with the mortgage lender or seeing if there is any governmental help.

With many thousands of UK families struggling financially, it would seem highly irresponsible for bankers to be making such claims.

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