Banks take measures to prevent repossessions

As the country faces an imminent recession, some leading banks and building societies have pledged to support those who fall behind in their mortgage payments. Northern Rock have announced that they will adopt a formal policy of waiting six months before beginning repossession proceedings against those who fall into arrears with their mortgages.

Although the bank argue that it is their standard practice to allow a period of six months to pass before repossession proceedings begin, this practice will become formal policy in order to safeguard the worries of those who are concerned about falling behind in payments. As unemployment figures are at their highest level since 1997, many homeowners who are out of a job are struggling to meet mortgage payments alongside other necessary payments and fear that they may face repossession. Northern Rock has recently been accused of taking an aggressive approach with repossessions since its nationalisation in February. The implementation of a six month policy should dispel these accusations of an aggressive approach and may promote a positive image for the bank.
Other major banks including the Royal Bank of Scotland and Bradford and Bingley are implementing similar measures, by allowing six months to pass before repossession takes place. Other major lenders agreed to a three month grace period before proceedings begin, with many arguing that this is standard practice in the industry.

The amount of homes repossessed next year has been predicted to increase to 75,000; almost matching the all-time high of repossessions in 1991. This high prediction, which comes from the Council of Mortgage Lenders, may drop if action is taken to support those who cannot afford to pay their mortgages.

Despite some positive changes, Northern Rock has announced that they will be increasing rates on its fixed-rate deals by up to 0.3%. The nationalised bank has gone against government wishes for banks and building societies to pass on the 1.5% cut in the base rate.

Unfortunately, for many, repossession is an imminent problem, particularly as the country heads towards recession and job losses continue to blight the financial situation of many families. Here at Swift Capital, we can offer a simple solution for those who need to release equity from their homes quickly. We will buy any house in any condition and can offer up to 80% of the market value of your home.

Our solicitors are experts in handling situations where repossession is imminent; we can enable a quick sale so that you can pay off the remaining mortgage with the equity released from the home. Contact Swift Capital today, even if you are facing repossession within hours, we may be able to help you.