Homeowners handing their houses back to the banks

HOMEOWNERS who can no longer afford to pay the mortgage are voluntarily giving up the keys to their property as they see no other way out of the debt, according to a housing charity.

Respond warned that many people in negative equity did not think it was worth trying to sell the house to repay the debt as there was no market for it.

These people are simply handing their houses back to the banks, the charity said, with some leaving the country and others moving back home with family.