Hardships felt by people as a result of the downturn are expected to continue, despite reports of an imminent recovery, it has been suggested – an indication to debtors that their financial worries could be prolonged.
Beccy Boden Wilks, a debt adviser for Money Advice Trust, noted that although instances of repossession are decreasing, the number of people experiencing mortgage arrears appears to be on the rise.
“We’re still going to see a lag between [recovery and] people being able to afford their mortgage payments,” she said, adding that “the human experiences of the recession will still carry on for quite some time”.
Ms Boden Wilks further remarked that the reduction in repossessions has come about as a result of government initiatives such as the pre-action protocol and improved creditor behaviour.
Her comments follow figures from the Financial Services Authority, which revealed that the number of home repossessions was down by nine per cent in the second quarter of 2009.
By Sarah Adie