UK Government urges Banks to be Lenient
Government urges banks to be more lenient with those facing repossession. The reality so far seems to be that the banks are only paying lip service to Alistair and Gordon and in reality those most at risk are still facing tough times.
Those most at risk as those who have sub prime mortgages, especially from US lenders who left the UK market in the last year or so and sold on their mortgages to sub-sub prime lenders. These new lenders are nothing more than debt collection agencies for mortgages. They buy the mortgages at a rock bottom price and then do their best to get possession of anyone who isn’t paying.
Because the sales market for homes has collapsed lenders are no longer rushing to auction to get their money back, because the chances are they won’t. Instead of that they are using agencies to rent out the homes, usually at a handsome profit and cash in on all those families who can no longer buy and who must rent.
If you are facing repossession the absolute best advice is to try and stay in control of what happens to your home. Whether that is via a sale or dealing with your arrears, because the moment you hand over the property to the lender you are no longer in control, your debts will continue to mount, and in this market there is nothing to say that lenders will sell for anything approaching the amount you owe.
And that is never the end of the story. Five or even twelve years from now you could be settled again, the economy booming and that lender will come looking for you to pay the balance of your old mortgage plus interest.
