Tuesday, December 11, 2007
the Citizens Advice Bureau said that irresponsible lending decisions and “aggressive arrears management” by sub-prime lenders was causing increasing numbers of homeowners with credit problems to miss mortgage payments or to have their homes repossessed.
One in five people who sought advice on mortgage or loan arrears from Citizens Advice relied on means-tested benefits, while a third had household incomes below the UK poverty line. A childless couple with a weekly income of £217 would be on the poverty line. Tenants encouraged to buy their council flat under the right-to-buy scheme were particularly vulnerable to rogue brokers and bad lending decisions.