Lenders should be “applauded” for the way they have been handling homeowner difficulties this year, a mortgage adviser has said.
Andy Pratt of Alexander Hall, one of the leading mortgage brokers in the UK, made this comment after repossession figures from the Council of Mortgage Lenders were reduced from 75,000 to 48,000, in spite of the downturn.
He noted that an increase in this is to be expected as unemployment levels rise, but stated that lenders are treating people in these situations “quite sympathetically”.
“I think that hopefully in the long run that will come out and will be applauded,” he continued.
Mr Pratt went on to note some industry players are even permitting customers to climb to 125 per cent loan-to-value.
However, he did state that a recovery would need to be seen towards the end of 2010 in order to “head off any major increase in repossessions”.
By Sarah Adie