The Department of Communities and Local Government (CLG) has launched a new website aimed at helping troubled borrowers avoid repossession.
While the site offers little in the way of new ideas, it does bring together clear step by step advice on what to do if you find yourself in arrears or faced with repossession, with links to both government sponsored rescue schemes and sources of advice such as CAB and Shelter.
As ever the key to minimizing the effect on homeowners and their families lies with the homeowner, as they need to accept the problem and take action.
Despite what people may fear, lenders will be sympathetic and will look to resolve the situation with repossession the last resort, which becomes more likely if borrowers put their head in the sand.
The Council of Mortgage Lenders (CML) forecast 65,000 homes will be repossessed this year, with the website claiming 116,000 homeowners have already benefited from lenders rearranging their mortgages.
CML Director General Michael Coogan says: “We welcome this additional initiative by the government to remind borrowers to speak to their lender at the earliest possible opportunity, and preferably as soon as they think they might miss a payment.
“Avoiding possession is as important to lenders as it is to borrowers, and an early warning will help reduce the risk of this worst-case outcome.”
The number of UK homes repossessed between April and June fell 10% compared to the previous three months.