National Homebuyers: 'Many face repossession'

Many British sub-prime mortgage borrowers face a battle to stop repossession due to irresponsible tactics within the industry.

[ClickPress, Fri Dec 21 2007] That is what is suggested in a new report from Citizens Advice entitled 'Set up to fail', which blames irresponsible lending and aggressive arrears management for a rise in the number of people trying to stop repossession.

The organisation claims to have seen an 11 per cent increase in the number of people seeking advice about mortgage and secured loans arrears.

"The cavalier behaviour of some brokers and sub-prime lenders is seriously undermining home ownership and hitting the most vulnerable borrowers hardest. Our research suggests that many aspiring homeowners have been mis-sold unsuitable and costly home loans that are doomed to fail from the start," said David Harker, chief executive of Citizens Advice.

"Many sub-prime lenders are flouting the rules on responsible lending by granting loans when it's clear the borrower will not be able to afford to repay it from the very outset, then getting tough immediately things go wrong.

"Far from providing housing security and a valuable asset, home ownership has proved a fast track to debt and homelessness for many vulnerable borrowers on low incomes," he added.

Fast cash for homes property sale expert Julian King adds, "Our analysts are sure of repossessions in excess of 45,000 in 2008.

"Homeowners needing a quick house sale to save them from repossession should act quickly".

Mr King is a director of National Homebuyers, the UK's leading fast property purchase firm, guaranteeing to make an offer on any property in the UK, regardless of its condition or location for vendors who need a quick sale. The company also offers a Sell and Rent Back mortgage rescue scheme for homeowners who want to release equity in their homes.

The Council of Mortgage Lenders recently forecast as 50 per cent increase in the number of people fighting to stop repossession in 2008.

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