A report from Citizens Advice has highlighted some of the debt management problems being faced by millions of families around the UK.
The organisation has said that it saw an increase of 11 per cent in the number of homeowners approaching its staff for mortgage debt advice last year and has called for lenders to address the issue more effectively.
Rather than initiating court proceedings that will ultimately lead to repossession, lenders ought to be focussing more effort on finding a debt management plan that leaves their customers in a position to clear their arrears, Citizens Advice has claimed.
“We want to see all lenders being reasonable when dealing with customers who do get into trouble and taking court action for possession only as a last resort,” the charity said.
Earlier this year, the same organisation claimed that the subprime mortgage sector has effectively undermined the value of home ownership for families around the country.