Review of secured loan repossessions on the cards

BERR, the Department for Business Enterprise and Regulatory Reform, may be reviewing the way secured loan lenders repossess properties.

The review is believed to have been prompted by government concerns that secured loan lenders are moving to repossession too quickly.

A source close to BERR says: “There have been allegations from other departments that such lenders are responsible for an abnormal level of repossessions. A review would discover the reality.

“The evidence so far is that second charge lenders aren’t instigating repossessions for borrowers in difficulties but are trying to help them.”