If you’re a member of the Yorkshire Bank and you’re facing potential house repossession – you’re in luck. In late December 2010, a report was published in relation to the banks stance regarding reducing the numbers of repossessions across its portfolio of borrowers.
Unlike other banks and lenders, Yorkshire Bank chooses to keep its arrears department in-house, thus avoiding the possibility of more of its borrowers falling through the net. The thinking is that by providing a dedicated section – called the Financial Solutions Unit – the bank can keep on top of those that need financial help and advice the most.
The unit was created back in 2009 and judging by the figures – the system works. As a rule, mortgage lenders tend to spread their debt services around different branches or even subcontract the work – which only works if a high standard of effective communication is in place between the lender, service and users.
In 2009, Yorkshire Bank repossessed 78 homes. In 2010 the figure had climbed to 96 – so does that illustrate that the format works? IN a word – yes. The bank has managed to work with and help in excess of 4,700 customers since the unit’s inception.
Coupled with that is the fact the bank possesses an extensive portfolio of borrowers on its books – plus there’s also the fact that two years into the recession, more and more people were feeling the pinch.
An increase of 23% is still an increase but in light of the facts – the system is working. The FSU not only tackles mortgage arrears, it’s widened its net to accommodate credit card debt, overdrafts and personal loans.
Shoring up the whole debt/financial issue is a great way to help a borrower avoid house repossessions – and the reality of it is that it benefits both the lender and the home owner. Banks don’t want/need houses – they want your money.
It works like this – if you continue to pay your mortgage over the natural course of the pre-agreed time span, the banks make more money in the long term. That’s what investing is all about. Whilst they can and do sell repossessed houses via auction property agents – that’s not the ideal situation and not what they (or you) signed up for.
If that were the case banks would stop being banks and switch to being direct property investors instead. In view of all that, what the Yorkshire Bank is offering is a very sound package of support for those that need it.
Knowing that you can halt the potential of a future repossession is far better than knowing you can’t do a thing about it. The additional stats made public by the Yorkshire Bank speak for themselves:
- Sept 2010 – total assets that went 90 days overdue were £265 million
- The previous year the figures were standing at £284 million – which shows that there was a 7% drop
The SFU works by way of referrals from branches around the country. If a borrower falls behind or requests a switch to an interest-only mortgage, the system flags the query or shortfall. You are then approached and offered the opportunity to discuss your finances.
If the Yorkshire cannot come up with an amenable solution, they don’t simply drop you off the deep end – they will instead refer you to an external agency that specialises in debt counselling (C.A.B. for example) and all being well a solution can be reached.
In short – what Yorkshire Bank is offering their customers is a well designed, well-rounded package of customer care. If you’re worried about your finances in any way, or can see the potential of house repossession down the line – talk to them.
It would appear that the Yorkshire Bank is the new listening bank.
Yorkshire Bank – SFU – (opens in new window) this takes you directly to the Yorkshire Bank’s SFU.