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Alternatives to repossession 'should be offered by banks'

Alternatives to repossession 'should be offered by banks'

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Banks and building societies have been called upon to start introducing alternatives to repossession.

This would benefit the market as a whole, according to Al Elliot from the Homeowners Advice Centre.

He recommended that lenders could begin to implement different ways to offset the prospect of a home being taken into possession.

One suggestion Mr Elliot made was for banks to offer lower repayment rates to borrowers in return for a higher stake in the property, in order for both parties to wait for the market to recover.

He explained: "Then, the homeowner can either sell up and repay the bank and start again, or increase repayment when they can."

"It seems to me that it serves nobody's interest to possess and force a sale in today's market," he added.

The Council of Mortgage Lenders has estimated that 45,000 homes will be repossessed in the UK by the end of the year.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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