Home repossessions happening too soon

Lenders are failing to comply with new rules recommending court action is taken as a last resort in repossession cases, says a report from three charities. In a third of recorded repossessions the lender had failed to comply with new rules known as the 'pre-action' protocol.

Sub-prime lenders were found to be taking court action earlier than high street lenders, and a few sub-prime lenders in particular had many more court cases listed than their share of the mortgage market.

Job loss and other loss of income were the most common reasons given for mortgage arrears.

The report found the support for mortgage interest (SMI) scheme, designed to help in these cases, did not cover the rates that borrowers were paying.

The report calls on all lenders to comply fully with the mortgage pre-action protocol. Funding for free, independent advice in court for people facing repossession action must be maintained as a priority, it adds.