Repossession 'sometimes the best option'

Monday, February 15 2010

People who are struggling with their mortgages may find that in some cases, having their house repossessed could be the best way to address the circumstances.

This is according to UK Insolvency Helpline spokesperson Ian Boden-Smyth, who commented that those who "are in such negative equity and your secured debts are so high that it would be half the cost to rent a similar quality home" could benefit from a repossession.

People who run the risk of never being able to get out of negative equity would do well to consider voluntary repossession, he advised.

Mr Boden-Smyth added: "From a debt advisor's point of view, repossession is a very good thing for someone if they are in huge negative equity."

Figures published by the Council of Mortgage Lenders on February 11th indicated that the total number of properties that were taken into possession last year totalled 46,000 - a lower figure than the 75,000 homes that were estimated at the beginning of 2009.