December 22, 2008
Experts Warn Of Repo Woe
Experts have warned that the Council of Mortgage Lenders’ prediction of 75,000 repossessions in 2009 could be avoided.
The Liberal Democrat Shadow Housing Minister, Sarah Teather says: “The Government has only taken action to help a few people. With tens of thousands of families set to lose their homes, ministers must act urgently to protect them.”
The Lib Dems say making changes to several laws, including that surrounds income support for mortgage interest repayments could help many more people facing repossession in 2009.
Teather adds: "Today's mortgage law is based on eighteenth and nineteenth century law and is completely inadequate. Unless the Government reforms the law and makes sure repossession is only ever an absolute last resort this will devastate families, as well as councils and the housing market as a whole."
Louise Cuming, head of mortgages at moneysupermarket.com, says lenders could do more too: "A sad part of this possible statistic is that lenders are still taking the opportunity to levy hefty charges when borrowers go into arrears. Given the dire state of the economy and the fact many more people are under financial pressure, providers should cut arrears fees if they want to prove a real commitment to supporting struggling customers.
"Of all the charges, the extra fee – sometimes up to £100 – for debt counselling seems most unfair. For lenders to take advantage of their most vulnerable customers who have approached them for help to get a grip on their finances is unacceptable.”
To keep up with the latest news and comments on the mortgage market please visit the Mortgage Broker Blog.