New repossessions structure 'required for homeowners'

Posted: 09 Feb 2010 09:30:47 GMT

A home repossessions structure needs to be developed which will take into account the difference between homeowners who are attempting to pay back their debts and those who are not, it has been suggested.

Co-owner of the Homeowners Advice Centre Al Elliot says that property owners who are making an effort to repay debt that they have accumulated on credit cards, for instance, should be protected from potential repossession.

He argues that a system which differentiated between "reckless" borrowers and those who are attempting to repay their debt would "provide those homeowners who are genuinely trying to repay their debts a good degree of protection from further, likely unjustified action".

Mr Elliot's comments come in response to a recent announcement from the Ministry of Justice, where a new consultation process was outlined, stating that homeowners may need to have a minimum level of debt before a court can issue a charging order or force the sale of their property.

He states that the new government measures may mean that homeowners are dissuaded from over-stretching themselves in terms of borrowing.

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