Thursday 3rd April 2008
Britons have had their properties repossessed when alternative schemes could have saved their homes, it has been suggested.
David Warnes, director of the Repossessions Advice Centre, claims that an inflexible approach by mortgage providers could be part of the problem.
He adds that the below-predictions level of repossessions in 2007 may be due to the fact that it was easier for those in trouble to remortgage to a more serviceable deal at the time.
But he contends that lenders do not go "anywhere near far enough" to avoid repossessing the homes of those who meet with financial difficulty.
"Clients have been repossessed when theyre still on a repayment mortgage," Mr Warnes explains.
"If they had converted the mortgage to an interest-earning mortgage then they might have been able to afford it," he observes.
He concludes that often the advice offered to those on the edge of affordability is limited to suggestions such as to cut down on drinking and smoking and divert such expenditure towards their debt.
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