Voluntary repossessions 'could be sensible for some'

By Jonathan Dawes, Wed 18 Aug 2010 - Published in Mortgages

Homeowners could find that voluntary repossession is a sensible strategy in some extreme circumstances, it has been claimed.

Chris Jenkins, co-owner of the Homeowners Advice Centre, said that people should always consider this a "last resort", as it can have a serious effect on their credit record and damage the chance of them being approved for future loans.

However, he admitted that it may be the most appropriate course of action in some cases, as struggling to meet mortgage payments for a long period of time can be draining on individuals and families.

"If all the other options have been considered and tried then voluntary repossession can sometimes be the best solution," Mr Jenkins commented.

The expert added that people should do all they can to avoid voluntary repossession in the first place, such as seeking advice early and preparing for unforeseen circumstances.

Last week, a report published by the Department for Communities and Local Government revealed that voluntary repossessions accounted for 26 per cent of all repossessions carried out in 2009.

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