Repossessed Homes In The UK



The number of repossessed homes in the UK has been on the rise since the global economic crisis of 2008. Following that year, the number of repossessed homes was at an all-time high of 46,000. However, it was still lower than the forecasted 49,000 home repossessions by the Council of Mortgage Lenders. The economic recession has brought financial problems for homeowners resulting in late payments on their mortgages. A study made by Flash Eurobarometer in 2010 showed that 37 percent of adults in UK felt that they have a low to moderate risk of falling behind on their mortgage payments, and 6 percent felt that they have a high risk of losing their homes.

If homeowners are unable to settle their arrears, lenders are forced to take legal actions to repossess the property. A number of steps and procedures are followed before the lender can officially repossess the property, and often, the homeowner is given ample chance and notice to settle his debt to avoid property repossession. If in the event that the homeowner and lender are unable to reach an alternative arrangement, the court will order a repossession order. Property repossessions affect thousands of families leaving them homeless. The stress of home repossession can truly be traumatic and even young children can see their lives turned upside down.

Fortunately, the government is determined in helping these troubled homeowners keep their properties. In 2009, two schemes were introduced by the government to aid homeowners who are falling behind on their repayments. First, the Mortgage Rescue Scheme (MRS) provided assistance for eligible homeowners to keep their home with the approval of the local council. Certain criteria needs to be met to be eligible for the program, for instance, annual earning must not exceed £60,000 and the value of your mortgage is less than 120 percent of the home’s actual value.

Second is the Homeowners Mortgage Support (HMS). This is a type of extended forbearance which reduces your monthly payments, holding it off for up to two years. The reduced amount is not written off; instead it is delayed, providing breathing space until your financial situation has improved. Certain criteria needs to be met to be eligible for the program, for instance, if your work hours have been reduced or you have been laid off from work. As a result from these government-initiated programs, a total of 20,254 households have benefitted as of March 2010.

It is important to remember that lenders have a legal responsibility to treat homeowners fairly and exhaust all other options before repossession of a property. As with any other problem, it is best to meet these financial problems head on. Homeowners needs to exhibit responsibility and fortitude during these tough times and not give up hope to save their property from repossession.

No related posts.

Tags: , , , , ,

One Response to “Repossessed Homes In The UK”

  1. Dear Repossessedhomesuk,
    Speaking of which, The collapse in the mortgage industry actually gave birth to literally millions of repossessed homes for sale. As an investor, you will find making a choice overwhelming. Even with a foreclosure list to help you, you would still have to browse thousands of properties before you can come up with a shortlist.
    Good Job!
    – Paul Harvey at http://repossessed1.com.au

Leave a Reply