COMMENT: ALISTAIR SHARP, GOVAN LAW CENTRE

For the past three years I have co-ordinated the Prevention of Homelessness project covering Govan and Pollok. In that time we have seen an increase in mortgage repossession. People experience financial difficulties for many reasons, mainly as a result of the breakdown of a relationship, unemployment and illness.

What had been affordable can become a financial problem. Even people in employment will find things difficult, especially those who have come to the end of their low-rate mortgages to find their payments have increased considerably and the prospect of obtaining the same deal is nil.

My experience is that lenders aggressively pursue borrowers and will, in most cases, use the law as a first resort to repossess the property and regain funds including costs. Also, lenders will dictate unaffordable arrangements to borrowers to pay off arrears, which can further exacerbate the problems.

Borrowers and their families whose mortgage lenders have raised repossession proceedings can be evicted, once decree has been granted, within four to six weeks; in some cases in as little as 14 days.

Our project has assisted many families with the Scottish Government's Mortgage to Rent scheme, which helps people in danger of having their homes repossessed stay in their home as tenants of a social landlord. But the process can take longer than six weeks. Also, the scheme does not apply to every owner-occupier; if the cost to repair the property exceeds a certain level, if a social landlord can't be found or if there is a large amount of equity on the property, the homeowner would need time to sell their home to obtain something more affordable.

In addition, the lender has to agree with Mortgage to Rent as a solution. However, without specialist legal assistance there is little time for the borrower to exhaust other solutions.

Homeowners need time to gain access to solutions to prevent them becoming homeless through repossession by lenders. My experience shows that court action and decree are processed as a first resort as a matter of policy for most lenders to recover funds and costs, thus pushing families into homelessness.

Alistair Sharp is Project Co-ordinator, Prevention of Homelessness Project, Govan Law Centre, Glasgow.

Back to Top