New court rules to stop repossession!

At the end of last year new Court rules were finally introduced specifically targeted at preventing repossession orders being granted unless lenders had made alternative remedies/attempts to sort out mortgage arrears with their borrowers.

It was a long time coming, lenders were keeping to a strict rule which was making it very difficult to stop repossession in time.

The introduction of the new “pre-action protocol” last November led to a sharp drop in the number of repossession orders being granted by judges in the first three months of 2009.

Unfortunately in some cases this may just have simply delayed the inevitable as the people who had the mortgage arrears were simply unable to do anything to make satisfactory payments to their lender.

The buy to let mortgage repossessions also fell for the first time in nearly 3 years, Council mortgage lenders figures also showed throughout the second quarter of 2009 there were 29,400 buy to let mortgages which were three months or more in arrears with their payments. This was a 17% drop from the 35,600 BTL mortgages in arrears during the first quarter.

The council mortgage lenders confirmed landlords in trouble were now clearly benefiting from the decrease/all time low in interest rates on their loans. Also not forgetting that the majority of buy to let loans are on a interest only basis and obviously the monthly payment would be considerably less than if it was a repayment mortgage.

So it's obvious as long as the landlord has a tenant paying market rent you would normally find that the landlord is in a position to keep up the interest only mortgage payment.

But there is a growing concern that when the market is stepping towards recovery interest rates will be predicted to rise. Landlords will probably start to feel the pressure and then will probably start to feel the similar pressure as home owners facing today.

The council mortgage lenders confirmed 1400 buy to let properties were repossessed in the second quarter, the same as in the first quarter but still at a record high.

So clearly the new Court rules that were introduced are stopping the lenders from using strong arm approach initially, they have to now give people other attempts to sort out mortgage arrears with their borrowers.

It is truly unbelievable, a year ago, there were just 1000 homes in the hands of the rent receivers, the figure now stands over 10,500 nearly 1% of all buy to let properties; quite a scary figure!

If you feel you are struggling to keep up your mortgage payment or any loans secured against your property please ensure that you look at your situation to find a solution before it's too late.  We do specialise in being able to stop repossession but the more time we have available the better and easier it is for us to help please also look other relevant pages within our website.

Also see:

Stop repossession
Stop house repossession
Repossession process
Quick property sale

Contact us or apply online, we can help you stop repossession of your home