RBS (who also own Natwest) have now announced they won’t start home repossession proceedings until a homeowner is at least 6 months in arrears. This is good news for people who are currently struggling and worried about losing their home as it is also likely other banks may follow their lead.
RBS/NAtwest only have just over 5% of the mortgage market and this move seems to have come from the fact it is now Government owned.
This move should help people who have recently lost a job but could in fact make matters worse for some. It is also good news for people looking to sell their homes to release any equity they have as it gives them longer to obtain maximum price in a sale (rather than a forced sale at auction if their home was repossessed).
If you cannot afford your mortgage payments however it is unlikely that in 6 months time things will look any better? House prices are still expected to fall further and therefore any equity you do have is more than likely to be fully eroded over this time.
If your home is repossessed and you owe more on it than its worth then you can be chased for the balance owing once it is sold.
If you are worried about your home being repossessed please visit our sister site:
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