Remortgaging to pay off debts can lead to repossessions

Tue, 25 Oct 2011

People who choose to remortgage their property in an attempt to pay off other debts have been warned such action can lead to repossessions.

A businessman in Ireland has been ordered to pay all the legal costs of such action, as he was found to have taken out a loan with subprime mortgage providers Start Mortgages on his family home in order to settle separate arrears, the Irish Times reports.

Ms Justice Elizabeth Dunne in the High Court explained the father of three was being made to pay the cost of the repossession as his actions had landed his wife in significant financial trouble.

The gentleman had previously left his partner and their children in 2008, while debts mounted up at the property still occupied by the family members he moved from.

Such an instance could serve as a warning to others considering their options when it comes to settling arrears - as home repossession could be a serious risk.

The news comes shortly after the Kentish Gazette reported that house repossessions should be made easier in order to simplify the eviction process with regard to people causing anti-social behaviour.

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