CAB advice for struggling homeowners ahead of new repossession figures

Sept. 11, 2011 - PRLog -- National charity Citizens Advice has produced top tips for homeowners struggling to
keep up mortgage payments ahead of tomorrow’s repossession figures. This advice is
based on its experience helping people deal with more than 100,000 mortgage and
secured loan arrears, and stopping 5,000 people becoming homeless over the past 12
months.

Chief Executive, Gillian Guy said:

“With the cost of living going up daily and incomes lagging badly behind, mortgage
lenders and the government must focus on helping people stay in their homes.
Repossession is a terrifying prospect and should always be the last resort”

She reminded anyone struggling to meet their mortgage repayments that they can get
free, independent advice from their local CAB.“You have a greater chance of staying
in your home if you seek advice and take action as soon as you think you’re having
problems,” she added.

Top tips if you start to fall behind on your mortgage:
* Make mortgage payments top priority - you could lose your home if you fall behind
with payments.
* Let your mortgage lender know if you're having problems - don't just stop paying
or miss payments. Your lender should treat you fairly and sympathetically and be
willing to negotiate affordable repayment arrangements with you. If they know you
are doing your best to stop the debt growing they are more likely to allow you more
time to sort the problem out.
* Get free, independent advice as soon as you realise there's a problem. Don’t wait
until you’re threatened with court action by your lender. Contact your nearest
Citizens Advice Bureau (for contact details, and for more detailed information about
dealing with mortgage arrears, go to the CAB website www.adviceguide.org.uk; or try
National Debtline (            0808 808 4000      www.nationaldebtline.co.uk or
Shelter (            0808 800 4444       www.shelter.org.uk
* You may be able to cut down your monthly mortgage costs. For example, your lender
may agree to reduce your monthly interest payments, increase the term of the
mortgage to give you more time to pay, or allow you to make interest-only payments
for a while.
* Check for any mortgage payment protection insurance you may have if you suddenly
lose your job or are unable to work because of illness or injury.
* Get advice on benefits, tax credits and other help you may be entitled to if you
are struggling. A CAB adviser can check if you are missing out on additional income
and help you make a claim.
* Don't ignore court papers and court hearings. If you are notified that your lender
is seeking possession through the courts, it doesn’t mean you’ve already lost your
home. Don’t be intimidated by your lender into believing there’s no point attending
the court hearing. Do go to court, but get advice first if you can. Otherwise look
out for an advice desk at the county court run by a free independent advice service
such as the CAB or Shelter. Getting advice – even at this stage – will give you a
much better chance of saving your home.
* Find out if you qualify for government help. If you are facing repossession, the
government’s mortgage rescue scheme (MRS) may allow you to sell your house but
continue to live in it and pay rent.. Ask your local council for details. If you’ve
lost your job and are claiming benefits, you may be able to get help towards paying
your mortgage interest.

http://www.griffinandking.co.uk/

# # #

Griffin and King are a leading firm of Insolvency Practitioners within the West Midlands with offices covering Dorset, Hampshire, Shropshire and Mid Wales