A recent report conducted jointly by the Citizens Advice Bureau, AdviceUK and Shelter has emerged as a damning indictment of Britain’s mortgage lenders. It claims that they are wantonly disregarding the rules which have been designed to help homeowners avoid repossession. In a staggering third of all recorded cases, lenders had flagrantly failed to comply with the new rules which compel them to take court action only as a last resort. Lenders should be taking homeowners through the other debt solutions on offer before the legal recourse. These findings suggest that this isn’t the case.

The report is based on the findings of financial advisors who give last minute advice to individuals facing bankruptcy and repossession when they arrive for their time in court. This shows that, on the day of their repossession hearings, individuals were finding that if they had been privy to the proper information, the painful experience could’ve been avoided. This last minute advice, provided by a court duty desk adviser, is proving to be crucial in helping people capitalise on any slim chance that the repossession of their family home could be prevented. An absolutely astonishing number of the cases analysed, more than three quarters, found that they could avoid the immediate loss of their home. Sadly though, due to the debts that put them in that position to start with, it’s estimated that half would struggle to sustain the repayments schedule. So, for many, the risk of repossession still looms and has simply been delayed.

In order to more successfully dodge the threat of repossession, being made aware of the possible debt solutions earlier would be a huge help. It is lucky then, as the lenders are letting down so many vulnerable homeowners, that there are specialist debt advisors at Harrington Brooks on hand to offer you the specialist support you need. The sooner you face up to your debt problems, the better. We’d still advise that you talk to your lender whenever you find yourself struggling to make a repayment but remember that there is free, impartial debt help available from one of the UK’s oldest and most respected financial institutions. After all, everyone’s circumstances are different so it pays to talk to someone with vast experience in dealing with cases of all kinds. Use the Harrington Brooks Debt Wizard to find out which debt solution would be best suited to someone in your situation. We have a dedicated Stop Repossession Service which can give you support throughout the entire process and we will do everything in our power to help you to fend off repossession if possible.

Financial analysts are predicting that the signs of an economic recovery and rising inflation could force the Bank of England’s Monetary Policy Committee (MPC) to consider raising interest rates ahead of schedule. This increase in interest rates looks set to begin in March and although the shift will be gradual, it will have a noticeable impact on the UK’s borrowers. Figures for economic growth which are due to be released at the end of January are predicted to confirm the green shoots of fiscal recovery and highlight a dramatic rise in inflation. Economic policy, although remaining flexible enough to support this recovery as much as possible, should do what it can to ensure that the UK meets the inflation target and the emergency bank rates could well hamper this effort.

A rise in interest rates throughout early 2010 was first predicted in September last year but there are other schools of thought surrounding the timeframe for economic recovery. Of particular interest is the opinion of the Royal Bank of Scotland, which was one of the most heavily effected lenders during the recession. In a statement, a representative of RBH stated that they expected bank rates to remain at the 0.5% emergency level for much of 2010. The real benefit of this would be to those homeowners who have a tracker mortgage and can use the low rate of interest to pay off as much of their mortgage as possible. After all, mortgage payments are likely to be your highest monthly expenditure and keeping a roof over your head one of your highest priorities.

Consolidating your unsecured debts into a single monthly payment can be an excellent way of easing the pressure of mounting debt. Remortgaging can be a suitable way to facilitate this, allowing you to release some of the equity in your home to service outstanding debt. You can remortgage by switching your existing mortgage to a different policy. With interest rates forecast to rise, those homeowners with a tracker mortgage, that have been reaping the benefits of the 0.5% emergency rate of interest, are in the best position to switch to a new lender. The process of shopping around can be a difficult, time consuming process and one which is fraught with potential pitfalls, so it is essential that you seek expert advice about your remortgage and be sure that your new mortgage is affordable to you.

For a while, there’s been a loophole which has allowed lenders to repossess people’s homes without having to take them to court. Finally, the Government has made an announcement that there are plans to close this legal loophole and offer better protection to homeowners facing mounting debt. At present, a lender is fully entitled to seize and sell off a property without the permission of either the homeowner or a court. It’s shocking that it is only as recently as last year that this issue came to light, when a lender repossessed a property after the borrower fell into arrears with their debt repayment. Although the mortgage lender had never gone to court to secure a repossession order, they evicted the owner on the grounds that they had secured a buy to let mortgage and were living at the address themselves. Therefore, they were evicted on the grounds of trespassing and the resulting media coverage brought the issue to the public’s attention.

The Ministry of Justice has released a statement suggesting that, while there was no evidence that this was a tactic being employed by other lenders, they felt compelled to close any loophole that allowed lenders to repossess properties belonging to vulnerable homeowners, without the need to attain a court order. Thus, in a proposal which was released recently, the government included a consultation document concerned with the security of homeowners facing the threat of repossession. The threat of mounting debt and bankruptcy has been high in the wake of the banking crisis and subsequent recession. Government figures have stated that over 33,000 people had benefitted from their advice scheme in the year up to September. This speaks volumes of the importance of specialist debt advice in helping to save individuals from the severe consequences of mounting debt; in particular, bankruptcy and repossession.

The loss of your home is one of the most traumatic events anyone can face. Keeping the roof over your family’s head is a defining factor in terms of your self confidence but debt can arise from a huge variety of causes and affect anyone at anytime. You simply must ensure that you speak to a trusted, independent debt advisor at the earliest opportunity. This will help you to avoid the most intrusive, severe debt solutions and help you to safeguard your home from the threat of repossession.

These Government schemes, combined with lender forbearance and low interest rates, have prompted the Council of Mortgage Lenders to re-evaluate their prediction for the number of repossessions, cutting the figure by a third, to 48,000. This is encouraging but safeguarding your home requires commitment and swift action. Get in touch with a debt specialist who will be able to outline the debt solutions that best suit your circumstances. Harrington Brooks is one of the longest established financial practices in the UK and have an unrivalled reputation with the Government’s Legislative bodies, industry regulators and creditors. For a tailored solution to your debt problem, the debt wizard at http://www.harringtonbrooks.co.uk/ is a fast, free and easy way to free yourself from the burden of bad debt.