Repossession should be last resort, says MP

Calling for a change in the law, George Mudie MP accused lenders of being too quick to repossess homes when a person gets into debt.

“Some lenders are taking court action for possession too quickly,” said the Labour MP as he introduced his Regulation of Mortgage Repossessions Bill.

“These measures are all designed to strengthen the regulations so that innocent, hard-working people who have a temporary setback can be given every opportunity to keep the family home together and when appropriate and by agreement, make good the default.”

Recent government figures reveal that the number of repossessions rose during the first quarter of 2006 by 57 per cent on the same period a year ago.

Though Mr Mudie said that many lenders were responsible, he accused many of not giving people a chance to go through a debt management scheme to repay.

He claims that families are affected by repossession and that lives are “needlessly destroyed”.

While the MP does not think his bill will pass through a second reading, Mr Mudie said he hoped it would raise awareness about the social consequences of repossession.