Abbey: repossession is a last resort

Mortgage lender Abbey has said it has always used repossession as a last resort.

The bank''s claim follows the government''s new recommendations on the use of repossession on struggling homeowners who fall behind on their mortgage repayments.

A spokesperson for the lender said: "Even before the Government issued their recommendations our policy always was to try to contact the customer to agree an alternative repayment option."

However, Abbey added that they would now be going one step further in light of Whitehall''s recommendations.

The bank stated that as well as contacting customers in mortgage arrears by phone and letter and said it will endeavor to renegotiate repayment terms and be more lenient with customers in arrears.

Abbey is also in discussions with the Consumer Credit Counselling Service and is considering offering free advice to people struggling with mortgage repayments.

The Council of Mortgage Lenders predicts 45,000 people will have had their homes repossessed by the end of the year.

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