Property repossession ‘a last resort’
Homeowners who are in arrears with their mortgage payments will have their properties repossessed as a “last resort”, according to one expert.
Ray Boulger, senior technical manager at independent mortgage advisor John Charcoal, says that repossessions are as bad news for lenders as they are for borrowers and therefore all other options will have to be exhausted before this takes place.
His comments come as the Financial Services Authority (FSA) sets out new measures, which aim to ensure that homeowners who are struggling to make their mortgage repayments are treated in a fair manner.
Such proposals include stopping lenders from charging monthly fees for customers who have made an arrangement to pay off their arrears and are sticking to this agreement.
Mr Boulger states: “The FSA proposal is very reasonable on that basis and obviously does avoid putting further pressure on people who have gone into arrears.”
Housing charity Shelter recently revealed that over one million people in the UK have used a credit card to pay for their mortgage or rent in the last 12 months.
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