Repossession ‘last resort’ say lenders

Permalink: Repossession ‘last resort’ say lenders
by Kay Murchie

First-time buyers should feel reassured that lenders are reluctant to let arrears issues reach the stage of repossession in spite of a rise in the amount of cases.

The advice from Which?, the consumer group, is to speak to your lender if you have fallen behind with mortgage repayments. Ignoring the problem will only make it worse.

The news comes after the Council of Mortgage Lenders (CML) announced that repossessions are at an 8-year high.

Howard Archer, of analysts Global Insight, added that the financial pressure on many homeowners is increasing and it seems certain repossessions will trend up considerably this year, especially if the economy suffers an extended marked slowdown and unemployment starts increasing.