Citizens Advice slams mortgage industry on arrears


The arrears management processes of mortgage lenders often increase the arrears problems faced by borrowers, according to a report by Citizens Advice Bureau (CAB).

The report, entitled Set up to Fail, also criticises brokers and lenders for failing to ensure their clients understand the risks of entering into a mortgage. The CAB also said many borrowers were not ending up with unaffordable and inappropriate mortgages, particularly those buying council homes, because they did not shop around, instead relying on their broker's recommendations. The report, which was created from over 1,200 case studies across the UK, says mortgage lenders are too quick to seek a court possession order, rather than negotiating with the borrower, a problem recently highl...

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