Debts & Loans

A mounting toll of home repossession cases is one of the surest signs the Credit Crunch is biting in Bristol.

Possession claims made by lenders were up 20 per cent at 379 at Bristol County Court in the third quarter of this year.

Possession orders made by the court are soaring – 41 per cent up at 318.

The human story behind the statistics is one of shock and misery for families faced with sudden homelessness.

Andy Steward, of the Citizen's Advice Bureau (CAB), in Bristol, said: "The number of cases we see is rising, particularly in the last two or three weeks. It's getting nasty."

Mr Steward said a factor was the number of people getting into negative equity – where the value of their home falls below the amount borrowed to pay for it.

But there is help available. The Bristol CAB, at 12, Broad Street (0870 121 2134) has expertise helping those facing repossession.

So does the Bristol Debt Advice Centre (0117 954 3990), in West Street, Old Market (above the SOFA recycling project).

Both organisations are members of Advice Centres for Avon (0117 378 9809), which represents more than 40 agencies locally.

Legal executive Yvonne Parks, senior case worker at the Debt Advice Centre, is a debt specialist and recently joined the duty solicitors' rota at the county court.

In the panel, right, are some of the questions people ask her...

Q: I can't afford my mortgage. Will I lose my house?

A: You should prioritise your mortgage payments if you wish to keep your home.

If this is not possible, it is important to let your mortgage lender know if you are having difficulties paying your mortgage.

Lenders can help you by: extending the term of your mortgage; changing the type of your mortgage, for example, to interest only; deferring payment - payment of part of the interest may be deferred for a period; rescheduling the arrears to be repaid over the life of the loan.

Q: My mortgage lender has issued possession proceedings. Will I lose my home?

A: Not necessarily. If you are more than two months in arrears with your mortgage payments, your mortgage company is usually within its rights to seek possession of the property.

However, you can usually avoid repossession if you can make the normal monthly payments plus an affordable amount to reduce and clear the arrears within the remaining mortgage term.

Lenders typically want such an arrangement to be bound by a suspended possession order at the county court. But if the lender takes repossession action in the court, the district judge may decide to make an outright possession order if they think that you cannot afford the repayments and there are arrears.

This will usually allow you 28 days to move out. If you do not move out, the lender will ask for an eviction warrant and a bailiff will call, usually after 14 days, to evict you.

If your situation changes during that time, you can apply to the court for another hearing.

It is important to attend the court hearing and get advice beforehand.

If you have not been able to get advice, go to the hearing anyway. There will be a duty solicitor who can advise you and talk to the judge on your behalf to help you keep your home.

The Government has recently introduced a £200-million package called Mortgage Rescue Measures to help prevent people losing their homes and it is hoped that 6,000 repossessions will be avoided in England.

If you cannot afford your mortgage or any repayment of your arrears, you should seek advice about this.

Q: I have lost my job and have to claim benefits. I can't afford my mortgage payments. Will I lose my home?

A: Check to see if you have any mortgage payment protection insurance.

If not, you may be able to get Department of Work and Pensions help towards at least some of the interest on your mortgage.

There are complicated rules regarding this and you should get immediate assistance from an advice agency.