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Mortgage problems require ‘joined up approach’

Mortgage problems require ‘joined up approach’

Category: Mortgages

Updated: 19/09/2011
First Published: 19/09/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
The Building Societies Association (BSA) has said that the problem of home repossession requires the collective efforts of the Government, the industry and consumer groups.

The number of people losing their home as a result of the economic problems has been less than in previous downturns, but more could be done, the BSA insists.

The group said that 'the cost of repossession to families, lenders and the Government is high, both in monetary and emotional terms'.

And in a report, the BSA said that lenders, insurers, advice agencies and the Government should come together to help tackle the problem.

The BSA has put forward a number of recommendations, including:

  • · The Government should actively encourage the take-up of insurance which would help pay consumers' mortgages in the event they become unable to;
  • · A discussion over shared equity schemes and the possibility of homeowners changing their equity stake in their home depending on their circumstances; and
  • · More clarity on help for homeowners facing difficulty.

"It is clear that there is no silver bullet to eliminate repossessions," said Paul Broadhead, head of mortgage policy at the BSA.

"Instead we need a framework of solutions, which together can help as many mortgage borrowers as possible to remain in their homes.

"Consumers get into difficulty meeting their mortgage repayments for a variety of reasons, in many cases it is caused by an unexpected life event, such as job loss or relationship breakdown.

"It is easy when reading statistics on repossessions to lose sight of the fact that each one represents a family who have lost their home. This is why the BSA is urging the industry, the Government, and other stakeholders to work together to help those at risk of losing their home."

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