It is clear that repossessions are on the rise at the moment and that is, unfortunately, to be expected in the present climate.
Buy to Let mortgages are at the forefront of this rise. The number of buy-to-let landlords unable to keep up payments on their mortgages more than doubled during the second half of last year, hitting record highs for almost 27,000.
People are being urged not to panic if they do get into difficulty.
The government has recently introduced new laws that put pressure on lenders to take it easy on borrowers that fall behind and to resort to repossession only as a last measure.
This is actually believed to be having a positive effect.
The Liberal Democrats are, however, not satisfied with these measures and have urged the government to do even more.
Lib Dem leader Nick Clegg has been quoted as saying “If the Government was serious about stemming the tide of repossessions, it would give courts the power to ensure repossession is the absolute last resort and remove the barriers to allow councils to invest in social housing.”
That is an interesting idea though I am not sure how seriously the government will take it.
In the meantime if you get into difficulties with you payments I urge you to talk to your lender at the earliest opportunity, I feel you are likely to find them in an understanding mood.
