Scottish homeowners remain victims of aggressive lenders
A BBC Scotland investigation has suggested that Scottish homeowners struggling with mortgage arrears are more likely to be repossessed than their English and Welsh counterparts.
A programme screened on BBC One Scotland yesterday compared the legal measures available to prevent repossession in Scotland with those covering the rest of the UK.
The programme makers claimed that Scotland’s failure to adopt the same measures as England and Wales put people at greater risk of repossession.
In England and Wales a measure known as the pre-action court protocol, which obliges lenders to negotiate with borrowers before taking court action, came into force in November.
The Ministry of Justice estimates that the scheme has reduced the number of repossession cases going through county courts in England and Wales by 50%.
However, Scottish borrowers have been left out of the loop and housing charity, Shelter Scotland, says it has evidence that lenders are still acting aggressively and that secondary lenders in particular are “putting people under pressure and causing greater distress”.
According to the charity, Scotland expect to see at least seven and a half thousand repossessions this year.