Lenders should be following the new guidelines for best practice when it comes to repossessions, one expert has said.
According to a spokesperson for the Money Advice Trust, lenders must now prove they have tried every course of action to a County Court before attempting to repossess a person’s home for missed payments.
The spokesperson stated that the credit industry, the charity sector and the government are all working towards influencing best practice in the mortgage market, which could also affect people with credit card debt.
“I think in the short term that is as much as they can do,” she said, adding that “lenders will definitely be looking at their lending criteria” in the long term, which could mean stricter standards for mortgage, loans and credit card applications.
Around 45,000 homes are to be repossessed in 2008, the Council of Mortgage Lenders has predicted.