A housing market recovery could cause a rise in the number of repossessions as lenders enforce suspended possession orders after previous leniency, according to the Consumer Credit Counselling Service (CCCS).
The debt charity counsels a large number of clients with suspended repossession orders on their homes which lenders have chosen not to enforce despite clients failing to meet court stipulated payments.
The CCCS is warning that the situation is likely to be aggravated in October when Support for Mortgage Interest payments for those who have lost their jobs are halved from 6.08% to 3.09%, to match the Bank of England’s average mortgage rate.
Delroy Corinaldi, CCCS’s director of external affairs, said: “There is no doubt that lenders have shown leniency towards debtors during the recession by not enforcing suspended possession orders. However
