In a recent article by the Mortgage Strategy, City centres are suffering from the highest numbers of repossessions in the UK, with London experiencing the highest number in the first three months of 2010, with 166% more than the runner up, Birmingham.

Many properties continue to be repossessed as home owners struggle to maintain their mortgage repayments mainly as a result of unemployment as well as a rise in inflation and falling house prices.

The Top 10

London

Birmingham

Manchester

Liverpool

Belfast

Nottingham

Craigavon

Peterborough

Coventry

Leeds

Advice4debtNI says “ If you are struggling to afford your mortgage and are considering giving up your home, in most cases the best outcome for both the home owner and the lender is if the home owner sells the property rather than ‘hand back the keys’ or letting the property be repossessed. 

 Handing back the keys doesn’t have any legal significance as the amount you owe will still be outstanding and you will continue to be liable for the mortgage until the house is bought by a new owner.  The lender will still have to go to court to gain a possession order and these court costs are passed to the borrower.  If the lender sells the property for less than the outstanding mortgage they can still pursue you through the courts for the shortfall. 

 If you are facing repossession but want to sell your home you can ask the court for time to sell and provide the court with a ‘Mallet letter’.  There may be other options available to you to avoid losing your home so please contact us for advice.  The most important thing is that you attend any court hearings as non attendance means your lender will automatically be granted a repossession order.