Mortgage Strategy reports "THE LIBERAL Democrats are calling for alternatives to repossession after slamming the government for allowing what they call grossly irresponsible lending practices to proliferate.
Nick Clegg, leader of the Lib Dems, says: "If we see large numbers of home owners struggling with their mortgage repayments, it is crucial that the government encourages banks to find alternatives to repossession."
The demand follows Clegg's call to Prime Minister Gordon Brown last week to reveal plans to force lenders to take their responsibilities seriously and stop evicting families.
Clegg adds: "The consequences of a sharp increase in repossessions could be serious, exacerbating an already falling housing market and causing yet more economic turmoil."
But a spokesman for the Council of Mortgage Lenders says: "Lenders already look at every alternative before repossessing homes.
"Depending on the circumstances, this could mean rescheduling or halting payments, or shifting to interest-only loans - it depends what is appropriate for each borrower."
John Tegg
www.protectiva.co.uk
0845 673 9999
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