Skip navigation | Skip to footer
 

Citizens Advice response to CML mortgage repossession figures

13 May 2010

Essential that new government maintains existing support for homeowners to prevent new wave of repossessions

Responding to today’s publication of the latest mortgage arrears and repossession figures by the Council of Mortgage Lenders (CML), national charity Citizens Advice has called on new Chancellor George Osborne to maintain emergency measures put in place to help keep struggling borrowers in their homes.

In a joint letter to the Chancellor with CML, the Building Societies Association (BSA) and Shelter, Citizens Advice urges him to make a long term commitment to help those borrowers most in need in order to prevent a further wave of repossessions.

The letter stresses that lenders, the voluntary advice sector, local and national government have collectively worked hard to minimise repossessions since the start of the economic downturn, and as a result repossessions are lower than was initially feared. However, the Citizens Advice service still dealt with over 115,000 problems about mortgage and secured loan arrears in the financial year just ended (April 2009 – March 2010) – a 21% increase compared to the previous year.

Citizens Advice is calling on the new government to maintain the mortgage rescue scheme and existing help towards mortgage interest payments for those who have lost jobs. It also urges the Chancellor to continue funding for debt advice services for homeowners, including free legal advice in court for those facing repossession action by their lenders, where it is estimated that immediate repossession is avoided in 85% of cases where people attend court and receive advice on the day.

Citizens Advice Chief Executive David Harker said:

“It is undoubtedly good news that the number of repossessions has fallen, and this is testament to the effectiveness of efforts by central and local government, lenders and the free, independent advice sector to work together to keep people in their homes despite the impact of the recession.

“But as the CML has pointed out, many thousands of families are still in a very precarious position. To withdraw support from them now would be disastrous, leading to huge numbers of people losing their homes unnecessarily. It is vital that the package of measures already in place is maintained in order to prevent a further wave of repossessions and the immense social and economic costs this would entail.

He added:

“We would urge anyone struggling with mortgage payments to get free, independent advice as quickly as possible (go to www.adviceguide.org.uk for more information and contact details of your nearest Citizens Advice Bureau). Even if you are facing court action it’s not too late – you should be able to see an adviser on the day of the hearing who in most cases can help you stay in your home.”

Notes to editors

  1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more information in England and Wales see citizensadvice.org.uk
  2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality. For online advice and information see adviceguide.org.uk
  3. Citizens Advice Bureaux in England and Wales advised 2.1 million clients on 7.1 million problems from April 2010 to March 2011. For full 2010/2011 service statistics see: citizensadvice.org.uk/press_statistics
  4. Out of 22 national charities, the Citizens Advice service is ranked by the general public as being the most helpful, approachable, professional, informative, effective / cost effective, reputable and accountable. (nfpSynergy’s Brand Attributes survey, May 2010).
  5. Most Citizens Advice service staff are trained volunteers, working at around 3,300 service outlets across England and Wales.