Abacus Daily Debt News

Homeowners need more help, survey says

Homeowners are in greater need of assistance during the recession so as to prevent them from defaulting on their loans and having their houses needlessly repossessed.

This is according to a new report from AdviceUK, Citizens Advice and Shelter, which found that in a third of cases, lenders were not compliant with new rules that require them to use court action as a last resort when chasing payments.

The bodies involved in creating Turning the tide? have called for these regulations and others to be enhanced so as to better protect those in debt.

Director of policy and campaigns at Shelter Kay Boycott, observing that the most commonly-cited reason for mortgage arrears is unemployment, said: "With 2,000 people losing their job every day, we must close these gaps urgently to ensure every vulnerable homeowner gets the protection they need."

In related news, Bernard Clarke of the Council of Mortgage Lenders recently noted that the body has had to revise its figures twice this year and, although repossessions may reach 50,000, this is still lower than originally forecast.

By Sarah Adie