Insurance News Archive

Tenants 'should contact lenders about repossessions'

Tenants who let their mortgage lender know that their landlord's property is facing repossession may be able to stay in their home, according to an expert.

Ian Potter, operations manager at the Association of Residential Letting Agents, says if renters let the bank or building society know that their payments are up-to-date, they may not be evicted.

"Very often the lenders … are in fact taking the rent beyond the tenancy because that quite often is sufficient to cover interests unknown," he asserts.

Mr Potter states that this practice should be encouraged, but it is not always possible.

If tenants are unable to stay on then there needs to be a longer period from the time a repossession notice is issued until the occupants are evicted to allow them to make alternative arrangements, he adds.

According to statistics from the Council of Mortgage Lenders, 40,000 homes were seized in 2008, 4,000 fewer than forecast.

24 Feb 2009