The Treasury Committee released a report this week entitled, Mortgage arrears and access to mortgage finance, which focused on households affected by the recession, struggling with mortgage arrears and/or at risk of repossession.
The Report reveals that both mortgage arrears and repossession levels are on an upward trend as a result of the recession, with both expected to continue rising over the next few years. The Committee acknowledges that many mainstream lenders are taking pro-active steps to support consumers in mortgage difficulties, but expressed concern at the lack of flexibility and forbearance shown by some lenders in the sub-prime, specialist and second charge sectors towards homeowners in arrears.
John McFall, Chairman of the Committee said: “Losing the family home is one of the most distressing experiences a family can go through. We have heard harrowing tales of households struggling to keep their heads above water in an attempt to avoid repossession. The next few ye…