FOR many a homeowner the credit crunch makes this a worrying time – if like most people you have a mortgage. A series of catastrophes in the global financial markets has seen banks go under, be bought up in “quick fire” sales or nationalised. The looming recession and the spiraling cost of living has squeezed household budgets.

Mortgages are now difficult to come by and difficult to keep, with economic experts warning that the dire situation is likely to get worse over the coming months and years.

It is far from surprising then that the number of homes being repossessed in West Yorkshire has soared in recent months.

The latest figures, compiled by the Ministry of Justice, make ominous reading.

In Leeds mortgage possession actions have been launched against 858 properties already this year – that works out as 12 per cent more claims than last year. Elsewhere in the region, the rising repossession rate has been even more dramatic. Dewsbury saw 457 mortgage possession actions launched – a rise of 24 per cent, while Wakefield has seen actions launched against 259 properties – a rise of 28 per cent. The biggest hike has been in Bradford with 918, a 36 per cent jump.

Advice charity National Debtline said it has seen a 30 per cent increase in the past year in the number of worried callers who have fallen into arrears on their mortgage.

So Consumer watch has teamed up with a leading Leeds-based law firm to bring you a guide to avoiding repossession.

Grahame Stowe, senior partner at Grahame Stowe Bateson, said: “Householders who are struggling with their finances need to be aware that no matter how grave their situation, it may be possible to come to some agreement with their mortgage provider.

“The worst thing that someone can do is to sit back and pretend that it isn’t happening. Even after court proceedings have been issued, it may be possible to find a workable solution.”

Advice to vulnerable householders:

1. Make sure you can afford a mortgage from the outset. This piece of advice does not just apply to first time buyers. Many cheap fixed-rate deals are due to expire so homeowners looking to remortgage should consider their options very carefully.

The key points to consider are:

What you can afford – review your monthly outgoings alongside your and income and work out exactly what you can afford;

Will your salary increase year on year – be truthful, is this a definite?

Always assume the worst by working on the basis that interest rates will rise;

2. The terms and conditions of your house loan. If in doubt, seek advice from a solicitor or another industry professional. Take immediate action if you find yourself struggling. Don’t ignore the warning signs. If you are living month-to-month and finding it difficult to meet mortgage payments or you miss a payment, burying your head in the sand and hoping that the problem will go away will only make the situation worse. The best possible course of action is to contact your mortgage provider at the earliest opportunity. Explain your situation, and ask to discuss ways to work together to avoid any repossession proceedings. Before you call, make sure you have information about your budget to hand. Be realistic about what you can afford. It is rare for mortgage providers to recoup their investments when homes are repossessed, so it is in their interests to negotiate with you and come to some form of agreement.

This could be by way of:

A payment holiday – a temporary period during which the borrower does not have to pay anything towards the mortgage, or is permitted to make reduced payments,

Capitalising arrears – when arrears are added to the total mortgage debt. Please bear in mind, however, that this solution can raise the cost of your monthly instalments in the long run, changing to an interest-only mortgage – converting a repayment mortgage to an interest-only mortgage can reduce the size of monthly instalments.

“Whatever you do, do something,” warned Mr Stowe. “Never ignore demands by your mortgage provider for outstanding arrears. If they feel that you have ignored their letters or phone calls your mortgage provider will be less willing to seek an amicable agreement with you. Work with them NOT against them.” 3.  Check to see if you are entitled to state benefit assistance such as tax credits or child benefit.  It is estimate that people in the UK are missing out on benefits and tax credits worth £5million a year. 4.  Keep your wits about you; beware of companies offering to help you avoid repossession by buying your property and renting it back to you.  Very often the purchase price offered is below market value and the rent you will be charged will most likely be over and above the average rental price in your area. 5.   Consider selling your property yourself.  If you simply cannot afford your mortgage, in the long term, you should consider selling the property yourself while you are still living there to get a higher price. 6.  Know your rights.  If the situation deteriorates and the bailiffs arrive at your home remember that they do not have the right to force their way into your home, said Mr Stowe.  “They are not permitted to push past you if you answer the door to them, however, they are allowed to climb over your fences and gates and gain entry through the doors and windows that have been left open.  Note that the bailiffs may attempt to gain entry by attempting to walk past you, asking to use the telephone or inviting themselves inside.  “You do not have to let them in.  Once inside, a bailiff will attempt to find and seize any goods of value.”

What to do if you are facing repossession

If worst comes to worst and you face losing your home, the best thing to do would be to seek legal advice immediately as court proceedings are likely to have been issued against you.

When meeting your solicitor:

1.  Prepare a thorough breakdown of your budget and take it to your first meeting;

2. Take a copy of your mortgage agreement, and all correspondence with your mortgage provider. This will help your solicitor get to grips with the situation quickly and enable them to help you devise some realistic options.