Those struggling with debt management and who are faced with potential repossession of their home may be buoyed by the fact that one industry expert believes the practice to be “a very good thing” for those with “huge negative equity”.
This is according to Ian Boden-Smyth of the UK Insolvency Helpline, who made his statement in support of a similar opinion recently put forward by housing minister John Healey.
Speaking on BBC Radio 5 Live, Mr Healey noted that such incidents may be “the best thing” for anyone finding it impossible to keep up with mortgage commitments.
Mr Boden-Smyth agreed with the politician, saying that those in negative equity are paying more than it would cost to rent the same house.
“It is the best thing for people who are in negative equity and will never get out of negative equity,” he continued.
Mr Boden-Smyth went on to observe that his organisation makes the recommendation of voluntary repossession to those who contact the helpline in this position.
However, chief executive of ClearDebt David Mond was appalled by John Healey’s comments and commented: “What tosh. Since when has losing your home and being turned out on the streets been anyone’s best option?”
“I think it is possible to radically lower the number of people losing their homes – but, counter intuitively, early repossession proceedings might be the best way to achieve this,” he continued.
By Sarah Adie