Struggling mortgage holders 'abandoning properties'
Struggling mortgage holders 'abandoning properties'
Monday 23rd February 2009
Although the number of repossessions reported by the Council of Mortgage Lenders (CML) represents an increase of 54 per cent on 2007 levels, the figure is also 11 per cent lower than the organisation's initial prediction.
However, the CML warned that an increasing number of mortgage holders are abandoning their homes or handing the keys back to their lender in an attempt to escape their debts.
"We strongly urge borrowers to contact their lender and work with them before taking this step, as there may be other solutions," commented CML director general Michael Coogan.
"Borrowers are still liable for their debt, even if they leave the property, so working through their problems is much more likely to be in their best interests."
The CML has predicted that 75,000 homes will be repossessed this year as British property owners continue to struggle with balancing mortgage payments and other forms of personal debt.
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