As the year’s financial woes draw to a close, those homeowners that have managed to navigate the peaks and troughs of 2009 will still have to hold-on tight for the year ahead, new figures have warned.
The Council of Mortgage Lenders (CML) predicted that repossessions in 2009 would hit 50,000, but a slowing rate in the year’s summer months meant that such a damning estimate looks unlikely to become truth.
However, the CML is once again predicting the 50,000 mark will be breached in 2010 as over a quarter of householders in the UK are suffering mental anguish and depression due to housing cost worries.
With more than 2 million households finding housing costs an eternal struggle, including 400,000 falling behind with rent and mortgage payments, the Christmas holidays will further dent family finances.
Speaking last month, Citizen Advice’s Policy Officer, Peter Tutton, said of the CML’s figures: “The really vital thing is that people should actively engage with their lender early on because what might have been a hopeless situation a year ago could now be effectively addressed by lenders showing more forbearance.“
“Many are offering more repayment solutions and through added protection such as the pre-action protocol for mortgage arrears which is designed to make sure that possession action really is a last resort.”
Andrew Leakey, managing partner of consumer and social welfare at Stephensons Solicitors LLP, said: “While the forecast reduction is better, it’s not exactly good news. This revision also depends on interest rates remaining low, and with some predicting that interest rates will rise, this could add to the misery faced by thousands of home owners.
“But should we really be prepared to let 50,000 homes be repossessed? The Government tried to set up schemes to prevent repossession. While thousands have accessed the advice, it is said that only 92 families have accepted offers through the scheme.”
Andrew and his team at Stephensons have helped hundreds of people get out of debt and stay in their homes, in many instances writing the debt off if there are discrepancies in the loan agreements.
For more information visit www.debtandrepossession.co.uk.