Citizens Advice: Mortgage repossession figures

Citizens Advice Head of Consumer Policy Sue Edwards said: "We are concerned about the increase in mortgage arrears and repossessions revealed in the latest data from the Council of Mortgage Lenders released today.

“We are continuing to see high numbers of people coming to see us with mortgage and secured loan arrears. Yet in too many cases lenders are still not doing everything they can to help borrowers in trouble, piling on extra charges, not negotiating with borrowers to come to a workable solution over repayment arrangements and using court action as a first rather than a last resort.

"To prevent the mortgage crisis deepening, it is vital that all lenders do everything in their power to help people avoid losing their homes: treating borrowers in arrears fairly and sympathetically, being willing to negotiate with borrowers in trouble and only using court action as a last resort.

"At the same time we are urging the Government to strengthen safety nets for homeowners at risk. Bringing in a ‘pre-action protocol' for mortgage arrears without delay would ensure that court action is only taken as a last resort, where all other options have failed and no agreement can be reached. Efforts also need to be made to boost existing provision for home owners on low incomes. Overhauling the Government support available to low income home owners, such as Income Support for Mortgage Interest (ISMI) would be a helpful start.

"Anyone who is falling behind with payments on a mortgage or secured loan should speak to their lender straight away. Lenders should negotiate with borrowers, but if you are having problems, make sure you seek free, confidential, independent advice without delay.

"Receiving court papers doesn't mean that you are going to lose your home. Getting advice, even at this late stage, can help the majority of people come to a workable agreement with their mortgage lender and can make all the difference between saving or losing their home.

"Your local CAB can help you sort out your debt problems, negotiate with creditors, and check for any additional income you may be due such as tax rebates, benefits or tax credits - go to the Citizens Advice website adviceguide.org.uk for a fact sheet on dealing with mortgage arrears, and to find contact details of your nearest CAB."