Lenders blamed for repossession rise

Money lenders operating in the UK have been blamed in part for the rise in repossession rates across the country.

David Warnes, director of the Repossessions Advice Centre, has claimed that mortgage providers do not go nearly as far as they could to ensure that vulnerable borrowers do not lose their homes.

“Clients have been repossessed when they’re still on a re-payment mortgage, which means that if they had converted the mortgage to an interest-earning mortgage then they might have been able to afford it,” he explained.

Many thousands of families with debt management problems are at risk of repossession and Mr Wanres went on to suggest that the threat has become more severe in recent months because the number of remortgage deals available has diminished.

The Council of Mortgage Lenders reported recently that almost 1.4 million homeowners in the UK are set to see the fixed-rate home loan deals expire this year and for many a new arrangement will be difficult to secure.

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