More concern about repossessions

We blogged the Lib Dems' concern about repossessions. Now The Citizens Advice Bureau (CAB) has renewed its call for tighter regulation of the mortgage market.

In 2007 they dealt with over 57,000 mortgage and secured loan arrears problems for consumers - an 11% increase on the previous year. They say

The findings of our December 2007 report on home ownership and debt "Set up to fail" showed that the current safety nets for homeowners on low incomes facing payment problems, such as income support for mortgage interest (ISMI), are completely inadequate, and these latest figures reinforce the need for much better quality and better value insurance products, for reform of ISMI, and for a housing benefit for homeowners similar to the help with rent available to tenants on low incomes.

Our evidence shows that lenders are not always doing everything they can to help borrowers in trouble, all too often piling on extra charges and being too quick to take court action rather than being prepared to negotiate affordable repayment arrangements.

We want to see all lenders being reasonable when dealing with customers who do get into trouble, and taking court action for possession only as a last resort.

The CAB is calling for tougher enforcement of existing regulation of mortgages, and for the same regulatory system to apply to all mortgages and other secured lending in future.

So if you get into difficulties, your lender ought to be reasonable and not punitive.