Debt charity warns of rise in repossessions

| August 14, 2010 | 0 Comments

The Consumer Credit Counselling Service (CCCS) has warned of a likely rise in repossessions in 2011.

Latest figures from the Council of Mortgage lenders show a fall in the number of homeowners repossessed.

However, the CCCS has on its books a number of clients with suspended repossession orders, lenders having shown forbearance and not enforced orders, despite borrowers failing to meet repayments ordered by the courts.

The national charity attributes this, in part, to housing market conditions and suggests that if the market continues to recover, lenders’ attitudes could harden.

In addition, changes to the Government’s Support for Mortgage Interest scheme, due in October, will leave some homeowners already struggling with mortgage arrears worse off.

Finally, CCCS chairman, Malcolm Hurlston, also points out that lenders are increasingly showing reluctance in allowing struggling debtors to switch to interest-only mortgages as a short term solution, giving people the necessary breathing space to reorganise household finances.

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