Abbey explains help for mortgage holders in arrears

Date:Monday 24th November 2008
Author: Rachel Fletcher

Mortgage lender Abbey has explained how it helps struggling borrowers after government figures on repossession orders and proceedings were released.

Abbey said that it has increased "proactive contact" with customers who enter arrears in their mortgages and added that it does not go straight into litigation when a customer is not deeply in arrears.

It also said that in the case of a struggling borrower, the terms of the contract are studied "to identify ways we can help them afford repayments" and Abbey also states that it sees repossession as a "last resort".

Abbey, which claims that its responsible lending means it has a lower level of arrears than the Council of Mortgage Lenders' average, added that it is working with the Consumer Credit Counselling Service to develop free advice for mortgage holders suffering difficulty.

According to figures from the Ministry of Justice, 38,511 mortgage possession claims were issues in the third quarter of 2008.

This seasonally-adjusted figure is nine per cent higher than the same period in 2007 and one per cent less than the previous quarter.