Mortgage lenders should offer more support to homeowners who are struggling to meet their mortgage repayments, it has been claimed.
According to advisor at the Homeowners Advice Centre Al Elliot, lenders should offer reduced repayment plans instead of considering repossession, as “the last thing [they] want is to try and sell in today’s market”.
“It seems to me that it serves nobody’s interest to possess and force a sale in today’s market,” he explained.
Should such a method be implemented by banks, those who are struggling with debt would be able to increase their repayments when they are in a more stable financial position, or sell their property to repay their lender in an effort to become debt free.
Research from the Council of Mortgage Lenders stated that in October 2008 it expected 45,000 properties in the UK to be repossessed during 2008.
This figure represents 0.38 per cent of mortgages in place in the country.
By Tom Musk