|
09-05-2008
Citizens Advice Head of Consumer Policy officer Sue Edwards said:
“We have seen a very sharp rise in the number of people coming to us with mortgage arrears*, and evidence that in too many case lenders are using court action as a first rather than a last resort.
“Many Citizens Advice Bureaux run county court advice desks, providing eleventh hour advice to homeowners at risk of repossession. Research has shown that getting advice – even at this late stage – can help the majority of people come to a workable agreement with their mortgage lender and save their homes, so we very much welcome the government’s announcement of more money for court advice desks.
“But we want to see all lenders doing everything in their power to avoid things getting to this stage. This means treating borrowers in arrears fairly and sympathetically, and being willing to negotiate with borrowers in trouble. Our evidence shows that all too often this isn't happening, which is why we need a 'pre-action protocol' - measures to ensure only those cases where no agreement is possible end up in court.”
Notes:
* Citizens Advice Bureaux in England and Wales saw mortgage arrears problems go up by 35% in the first two months of 2008 compared with the same period in 2007.
In December 2007 Citizens Advice published an evidence report, Set up to fail, showing how dubious advice from brokers, irresponsible lending decisions and aggressive arrears management by sub-prime lenders are driving the current increase in mortgage arrears, court action and repossessions. The report also shows how the regulation and safety nets currently in place are failing to protect vulnerable borrowers.
CAB top tips if you start to fall behind on your mortgage
- Let your mortgage lender know if you're having problems - don't just stop paying or miss payments
- Make mortgage payments top priority - you could lose your home if you don't pay
- Get independent advice as soon as you realise there's a problem
- Don't ignore court papers and court hearings - do attend court, but get advice first
- If you're suddenly out of work or unable to work because of illness or injury, check for any payment protection insurance you may have and get advice on benefits and other help you may be entitled to
- Your local CAB provides free, confidential, independent advice and can help you sort out your debt problems, negotiate with creditors, and check for any additional income you may be due such as tax rebates, benefits or tax credits – go to the Citizens Advice website
 www.adviceguide.org.uk for a fact sheet on dealing with mortgage arrears, and to find contact details of your nearest CAB
Notes to editors:
- The Citizens Advice service is a network of independent charities that helps people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more information in England and Wales see www.citizensadvice.org.uk
- The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
- Most Citizens Advice service staff are trained volunteers, working at over 3,300 locations across England and Wales.
- Advice and information www.adviceguide.org.uk
- Volunteer hotline 08451 264264 (local rate)
- Citizens Advice Guide to your rights, second edition: January 2008 - over 600 pages of practical, independent CAB advice. An invaluable resource for any bookshelf - available from all good bookshops; price £11.99; ISBN: 9780141034089
|
