The debt charity Consumer Credit Counselling Service (CCCS) says it has seen a
substantial rise in calls to its helpline from people struggling to deal
with debts after a bereavement.

During the boom years in the property sector buy to met mortgages became very popular, and many people invested in properties to rent out over the course of the property boom. However, since the global credit crisis and the near financial collapse seen over recent years the mortgage markets have changed radically, and buy to let is just one of the sectors that have been affected.

Getting a buy to let mortgage has been difficult for the past couple of years, and although the mortgage market is said to have improved over recent months officials believe that buy to mortgage access will remain restricted for some time to come. Buy to let mortgage lenders are also facing a drop in confidence levels amongst would be landlords.

Research was carried out by LSL Property Services, and in its report said that there are a number of factors that are contributing towards the state of the situation. Officials believe that the bleak conditions in relation to buy to let mortgages could continue until at least 2012.

Increased capital gains tax in the UK has been partly blamed for the situation, as this means greater financial losses for higher rate tax payers. This, in combination with house price falls seen recently, has given rise to speculation that the buy to met mortgage market could continue to experience difficulties.

The survey that was carried out that previously 48 percent of landlords thought that it was a good time to buy due to rising rents and house prices. However, this confidence is said to have been stopped in its tracks because of the situation with capital gains tax and the more recent fall in house prices.

Buy to let mortgage market could remain difficult is a post from: Glitec

It has been reported that some loan firms have been housing grieving families in the UK for repayment of the debts of their deceased loved ones. According to reports some families are not even being given the chance to sort out the estates of their loved ones before they find themselves being hounded by banks and loan companies.

Accusations have now been made that some banks and loan companies are acting greedily and selfishly by pestering the families of those that have died and who are already struggling to cope financially with their loved ones gone. Officials from the Consumer Credit Counselling Service have said that the number of calls being received in relation to these incidents has increased.

The CCCS said that it was difficult enough for people to cope with the loss of a loved one, but having to deal with their debts and with persistent lenders made the situation even worse for many. The charity said that this particularly affected those who had lost loved ones who were main income earners or whose incomes had been used to cover repayments on the debts.

Problems often arise because some people fail to realise that if they sign a joint loan agreement they are responsible for the repayments in the event that the joint applicant dies. This is something that applies to mortgage loans, loans, rental agreements, and other forms of finance agreements.

One solicitors firm, Silverman Sherliker, said: “It’s not appropriate for creditors to harass bereaved family members as all inquiries relating to a deceased affairs ought to be directed to the executors or personal representatives, who are often a firm of solicitors.”

The CCCS said: “Bereavement is difficult enough, but finding you have to deal with debt makes it that much harder. This is particularly so for those that have lost a partner or spouse whose income was used to maintain the repayments.”

Grieving families hounded over loans is a post from: Glitec