Mortgage News
Shelter warns of risk of repossessions rise
Housing charity Shelter has warned of a second wave of home repossessions when interest rates rise, despite CML statistics earlier this month showing the number of possessions had dropped 10% drop from the first quarter of the year.
The charity said that rising unemployment would also add to the risk of homeowners being unable to make their regular mortgage repayments in the coming months.
Kay Boycott, director of policy and campaigns at Shelter, said the unemployment figures confirmed that a rising number of homeowners were struggling desperately to keep their home.
“Despite many lenders using more tolerant measures to help their customers, further action is needed if we are to prevent a second and more devastating wave of repossessions.”
The charity called upon lenders to consider allowing homeowners in arrears the opportunity to move their mortgage from high fixed rates onto low variable rates, while waiving any redemption penalty charges.
Boycott explained: “With interest rates set to remain low in the immediate future, this simple move could save homeowners hundreds of pounds every month and allow them to keep up repayments while paying off their arrears.
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She added: “Banks have been bailed out with billions of pounds of taxpayers’ money. Now it’s time to ensure they do everything they can to keep customers in their homes.”