Repossession is the last resort says Governnment

Prime Minister Gordon Brown has announced plans to ease the strain for the growing number of homeowners facing the threat of repossession. Under a new protocol mortgage lenders will be obliged to offer alternative solutions to such individuals before the matter reaches court.

Brown told the Commons that once a repossession order is taken out the mortgage lender will have to prove to the courts that they offered options to the homeowners in question. Such alternative solutions to repossession could include a repayment holiday, changing the type of mortgage or extending the terms of repayment.

The announcement follows reports of charities experiencing a leap in the number of people seeking mortgage advice and judges struggling to deal with the volume of repossession orders. has also seen a rise in the number of people seeking lawyers to help on repossession cases.

Justice Minister Bridget Prentice has said: “Lenders will be expected to consider ways of resolving problems outside the court system so that mortgage possession claims are only brought to court after all other suitable options have been exhausted."

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