Lenders praised for keeping repossessions low

Lenders have been praised for helping homeowners who are having debt management issues to avoid repossession.

Stephen Sklaroff, director general of the Finance and Leasing Association (FLA), hailed mortgage providers for their efforts to keep the level of repossessions down in the wake of the credit crunch.

“It is to their credit that the number of repossessions has remained almost flat compared to the same period last year,” he remarked.

His comments came as the FLA revealed that second charge lenders took 373 out of a possible 10,000 properties into possession during the first quarter of 2009.

The organisation stated that a more sympathetic attitude from mortgage firms had helped to keep the figure low.

Mr Sklaroff said that lenders are aware of the “pressures that many people face in the midst of recession”.

In related news, Nationwide and Citizens Advice have joined forces to launch the MoneyActive scheme, which aims to teach 100,000 people about handling debts.

By Jamie Price