Musings of a London Property Finder

The Treasury have announced new rules to help protect homeowners in mortgage arrears avoid repossession today.  Lenders will now be expected to demonstrate that they have tried to discuss and agree alternatives with the mortgagee and if a case reaches court, to explain precisely what they have done to comply with the new protocols to ensure that repossession is a last resort.

The government will also publish a consultation paper in response to the OFT’s recommendations to regulate the Sale and Lease Back sector of the property market, which should remove the Rachman-esque reputation of the sector. 

In our opinion this is long-overdue and the government’s reaction to the increased media headlines about repossession should console homeowners, however as we reported last week, the number of repossessions forecast for this year remains low according to the Council of Mortgage Lenders (CML).  The CML have also published new guidance today for lenders dealing with mortgage arrears and repossessions, which unlike the government’s planned protocols is a reference point for lenders on what they ‘should’ do rather than a rule book.

 CML director general Michael Coogan commented:

€œDespite the fact that the rate of repossession is modest, we recognise that there is significant public concern about this subject.  The new guidance should help to reassure consumers that lenders are genuinely committed to seeing repossession as a last resort, and that the checks and balances that protect consumers are in place.”

Chief Secretary to the Treasury, Yvette Cooper said:

€œWe need to make sure we help those who might be hardest hit in the tougher times ahead, ensuring repossession is the last resort not the first.  We also want to make sure that vulnerable homeowners are protected from exploitation and dodgy deals.€  There will be no dodgy deals if you instruct this London Property Finder

http://www.hm-treasury.gov.uk/press_108_08.htm

http://www.cml.org.uk/cml/media/press/1965

Technorati Tags: CML, council of mortgage lenders, Court Protocols, HM Treasury, London Property Finder, Mortgage arrears, Repossessions, Sale and Lease-back, Sale and rent-back

Tags: CML, council of mortgage lenders, Court Protocols, HM Treasury, London Property Finder, Mortgage arrears, Repossessions, Sale and Lease-back, Sale and rent-back