22 Dec

Lenders 'are dealing well' with homeowners in financial difficulty

Lenders 'are dealing well' with homeowners in financial difficulty

Lenders have been praised for the way in which they are dealing with homeowners who are struggling with mortgage payments by one industry expert.

Andy Pratt, chief operating officer of Alexander Hall, commented that banks have been "sympathetic" towards borrowers facing the possibility of repossession.

In November, the Council of Mortgage Lenders (CML) cut its repossession forecast for 2009 to 48,000.

Last year, the CML had predicted that 75,000 people would lose their homes in 2009.

Mr Pratt partially attributed the falling repossession figures to the financial institutions: "They are definitely dealing with people sympathetically during this economic period."

He explained that some lenders are allowing customers to reach 120 or 125 per cent loan-to-value on existing mortgages to help them deal with money problems.

However, Mr Pratt pointed out that lenders will need to see a recovery in the situation towards the second half of the year otherwise they will run into difficulties.ADNFCR-1222-ID-19525701-ADNFCR

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