Mortgage News Repossession Must Be A Last Resort Says The Government 2398
Written by Editorial Team
Repossession must be a last resort says the Government
23 October 2008 / by Rebecca Sargent
Repossessions have become a Government concern as the Treasury announced new rules yesterday aimed at protecting homeowners who are at an increased risk of losing their homes as the UK enters a recession.
According to the Council of Mortgage Lenders (CML), around 45,000 homes will be repossessed this year, an increase of 25,000 since it predicted in January 2007 that possessions for 2008 would stand at 20,000.
As a result, the Government has announced new protocols which will help to ensure that repossessions are only used as a last resort. The new rules mean that mortgage lenders will be expected to demonstrate that they have tried and discussed all possible alternatives to repossession with those who are falling behind with their mortgage repayments.