New ruling gives lenders 'the green light to repossess'

Lenders can repossess a borrower's home if they miss two monthly payments, the High Court has ruled.

The ruling allows lenders to sidestep repossession rules and sell homes from underneath families without needing a court order.

According to the Telegraph, this has implications for homeowners who are battling to keep up with their payments and will allow lenders to dodge recent rules introduced by Gordon Brown that instructed lenders to seek repossession only as a last resort.

The prime minister's rules require lenders to illustrate to a court the range of alternatives they have pursued before looking to repossess a home.

Following the High Court ruling - which reinforces legislation dating back to 1925 - it is vital that homeowners who have completed a self build project keep up with their monthly payments.

The number of repossessions in the UK is expected to increase by 50 per cent this year to 45,000, according to the Council of Mortgage Lenders.