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The Government have reiterated their pledge to avoid repossessions at all costs.

In his pre-Budget report, the Chancellor Alistair Darling promised that they would make sure that mortgage lenders would not repossess without exploring every other avenue.

He told the commons yesterday: “It is right that repossession should be the last resort. I am pleased to say that this has been recognised by the lenders.
The major lenders have agreed today that, where someone is facing repayment difficulties with their home mortgage, they will wait at least three months after the borrower falls into arrears before initiating repossession proceedings.”

Darling says this will give homeowners time to work with lenders, to find a solution. In his speech, he said accepting a minimum payment or creating mortgage rescue schemes before and after homeowners get into difficulties are better options.

He added: “It is also important that families worried about their finances and mortgages can get expert and impartial advice. So I am announcing today £15m of new funding for free debt advice, available to everyone, regardless of circumstances, available across the country.”

This is great news for those with mortgage problems, but free advice cannot help if you need refinance or alternative funding. Only a regulated mortgage adviser can do that for you.

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