Abbey outlines repossession policy

Abbey is consulting a debt advice charity on how to deal with borrowers that are struggling to pay their mortgage, it has been revealed.

The lender is in discussions with the Consumer Credit Counselling Service for it to offer a free advice service for customers who are having difficulties in handling their repayments.

A spokesperson for Abbey said that the bank has always had a low rate of repossessions because of its “ongoing responsible approach to lending”.

“In the few cases that do unfortunately end up going into arrears, we have always seen repossession as a last resort,” the spokesperson added.

The revelation comes after the government outlined new protocols in order to protect homeowners from having their properties taken into possession.

Lenders will be required to demonstrate to a court that they have discussed alternatives to repossession with borrowers before any action can take place.

By Jamie Price