Repossessing a home in the current economic climate is in nobody's interest, it has been suggested.
According to the Homeowners Advice Centre, mortgage providers should not be seeking to take back properties from secured loans holders because this will not benefit them.
Advisor at the body Al Elliot explained that the lender may have difficulty recovering the home's value.
Lenders still 'own' the asset - the house - which everyone knows, in the long term, will recover its value so the last thing lenders want to do is to try to sell in today's market," he said.
Mr Elliot suggested that lenders instead offer to reduce payments in return for receiving a larger equity stake.
These payments can then be increased when the borrower is able, or alternatively the house can be sold when the market has recovered.
Recently the Council of Mortgage Lenders predicted that 45,000 homes would be repossessed in the UK by the end of 2008.
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