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Home repossessions up 50%

Journalist: Jake Carter, Mortgage Introducer

ended 15. June 2023

More than 1,000 homes were repossessed in the first quarter of the year, according to UK Finance.

With home repossessions up, what are you doing for your clients after the sale? Is there any further support if they are getting into difficulties?

What do you do to help vulnerable clients after the sale?

What support would you like to see introduced for those struggling?

What are your expectations for the number of repossessions over 2023?

3 responses from the Newspage community

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Jonathan Burridge
Founding Adviser at We Are Money
The stress of a property possession does not end when you are forced to vacate. I know from personal experience that the emotional pressure remains long after the property has been sold, generally below value and there is no guarantee the borrower will be free of the debt. Lenders do not take these steps lightly and it is their final resort usually after a prolonged period of non-payment and when no other option is viable. However, the impact on the borrower and their family is enormous and they may have been under financial stress for over year before the order is granted and it could take another year for the possession process to conclude. The best advice I can offer is to engage with the lender and work them, this will reduce the stress. Try and remain positive, it may not seem it at the time, but, it will pass and life will improve. Dont be proud, ask for support, it has happened to many people for many reasons. You are not alone.
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Austyn Johnson
Founder at Mortgages For Actors
We keep in touch with our clients, with a yearly review, and a 3 monthly review if they didn't want protection straight away. We also like to ensure that the client knows that we are here if they are struggling. It's not worth just leaving people out in the wild after you have been paid. It's not morally ethical either!
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James Vince
Managing Director at Castle View Finance
With debt-to-income levels high due to years of cheap and available money, it is natural that we see an increase in defaults, arrears and legal proceedings. There are several support functions available within the wider community with Citizan advice being a good starting base. The issue in the traditional stiff-upper-lip British culture is 'we don't worry about it' and 'we certainly don't discuss our affairs with those around us' this is a part of the problem. People don't reach for help until its too late in many cases. We should share with friends and family, we should speak and open up to the creditors and we certainly should seek advice from professionals when money worries and challenges become evident.

Due to spiraling living costs in all areas, we will see increasing challenges but options such as 2nd charge lending, remortgaging, downsizing and equity release could help and support people before its too late.

It's good to talk, it's in everyone's interest!