Government updates repossession advice

Homeowners under threat of repossession and tenants on the brink of eviction have a new resource available at www.direct.gov.uk.

The site now contains articles and videos prepared by the Ministry of Justice, aimed at informing people with both mortgage and rent arrears.

The advice addresses a wide range of problems and is suitable for those who think they may have a problem keeping up their payments, through to those preparing for a court hearing.

While estimates for repossessions have fallen since the early part of the year, the Council of Mortgage Lenders still expects 65,000 homes to be seized by lenders during 2009.

Turning to rent arrears, these have risen sharply in the recession, with latest figures from LSL Property Services showing the total amount of unpaid rent in the UK increasing by an estimated £1.5 million in June, to around £254 million.

In addition, rising unemployment and interest rates are likely to produce a second wave of repossessions and evictions, housing charity Shelter has warned.

Discuss this in the Finance Markets forums

Story link: Government updates repossession advice