CAB criticises lenders over repossessions

Posted 2008-02-19

The Citizens Advice Bureau (CAB) has reprimanded lenders for "not doing everything they can" to help borrowers avoid having their home repossessed. New figures released by the Council of Mortgage Lenders show that the number of home repossessions soared to 27,100 in 2007 - a dramatic 21 per cent increase on the previous year. That figure is also nearly twice the total number recorded in 2005 and means that 0.23 per cent of all mortgage borrowers in the UK now end up having their home repossessed. Commenting on the latest report - which also ominously saw the percentage of homeowners in arrears by at least three months rising to 4.6 per cent - CAB head of consumer policy, Sue Edwards, said some blame must fall at the feet of uncompromising lenders. She commented: "Our evidence shows that lenders are not always doing everything they can to help borrowers in trouble, all too often piling on extra charges and being too quick to take court action rather than being prepared to negotiate affordable repayment arrangements." Last year, CAB received over 57,000 enquiries about mortgage and secured loan arrears.

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