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 is a fast, free and easy way to free yourself from the burden of bad debt.