Last update: Wed Jun 4 2008 22:57:22

Mortgage lenders offer more reposessions help

Britain's mortgage industry - itself under fire for the level of repossessions - has accused the Government of not doing enough to prevent them.

As the credit crunch hits and thousands of people struggle to make payments, the Council of Mortgage Lenders (CML) has called on Gordon Brown to do more for those in arrears.

In a letter to Chancellor Alistair Darling it has set out its own plans to minimise the number of people who have their homes repossessed as they brace themselves for a rise in defaults.

The group said its members had committed to four new measures to help keep the number of people who lose their homes to a minimum, including being more proactive in helping people who fall behind with payments.

Malcolm Hurlston, chairman of debt charity the Consumer Credit Counselling Service, said: "This is a welcome statement from the lenders which nevertheless smacks of complacency.

"A greater readiness to find new ways of helping people whose mortgages are under water is needed, as well as a budget for a promotional campaign to direct people, good and early, to the best sources of advice."

The CML warned last year that repossessions were likely to soar by 50 per cent during 2008 to 45,000.

Government data released last month showed that the number of repossession orders made in courts in England and Wales had risen by 17 per cent during the first three months of the year to 27,530 - the highest level for 16 years.

© Independent Television News Limited 2009. All rights reserved.

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