Repossession can potentially be avoided by those experiencing debt problems if they inform their mortgage lenders, one independent specialist has suggested.
Property expert Malcolm Harrison stated that people should not be afraid to ask their provider for help if they find themselves getting behind on payments.
“If things go pear-shaped with you in your job, you should be quick to tell your mortgage lender. They will respect you for doing that and will help you work out what you should do,” he said.
Borrowers may receive help from their provider as it is “not in their interest” to repossess a property, he added.
A quarterly bulletin by the Bank of England today revealed that between seven and 11 per cent of buyers were currently in negative equity on their homes.
In recent news, consumer search website Unbiased.co.uk discovered that individuals who had purchased buy-to-let mortgages may start to find themselves getting into debt if the market continues to slump.
By Francis Finch