Repossession isn’t an easy option
More than 125,000 people are three months or more behind with their mortgage payments.
And, as recent interest rate rises start to hit home, many more are likely to find themselves in this situation.
The majority are three to six months behind, but some haven’t made a payment for a year or more, and lenders are taking an increasingly hard line, according to the Council of Mortgage Lenders.
They repossessed around 14,000 properties in the first six months of the year – nearly a fifth more than in the first half of 2006.
These people haven’t just lost their homes – their credit score and chances of future financial stability have been wrecked, as the lenders pursue them for their outstanding cash.
So if you get into difficulties, don’t ever assume repossession is an easy way out.
It’s far better to negotiate with your lender – well before things get to that stage.
August 11th, 2007 at 9:41 am
What is it with people nowadays? Everyone seems to think getting into more and more debt is okay. When I was young you thought yourself lucky to get a mortgage, only the rich had credit cards and debt was frowned on. If more people thought that way now there’d be fewer losing their homes.