"While this is really nothing new, it is good to hear the Prime Minister reiterating the spirit of the FSA guidelines on repossessions. Some lenders could perhaps be accused of having taken poetic license with the guidelines over the past year. Certain lenders have proven to be quite aggressive in their willingness to repossess, where it would be much more conducive to a successful housing market, to help out those in arrears and work with them to get repayments back on track.
"The fear is that some lenders seem to have little inclination to help struggling borrowers out. Even where repossessions are used as a last resort, borrowers in arrears are often hit with hugely inflated fees and charges for services such as sending letters and debt counseling. Any borrowers who are struggling should contact their mortgage provider immediately to see if they can work out a repayment programme and try to prevent any unnecessary extra charges".
