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

Musings of a London Property Finder

Sophie Ridge writing in The News of The World on Sunday reported that Northern Rock aims to fast-track repossessions, sending in the bailiffs to 7,500 homes by Christmas.  The bank will take a particularly hard line with customers who are not expected to be able to get themselves back into the black.

The combination of 125pts mortgages, illness, no mortgage payment or income protection insurance and the end of low fixed rates means more and more people are falling behind with payments.

The NOTW quotes that 18,900 families lost homes in the first six months of the year and that the Council of Mortgage Lenders prediction remains 45,000.  Some of those affected will be Buy To Let investors losing an investment rather than a family home.

It would seem to us better for repossession to raise it’s ugly head sooner rather than later,  however painful it may be, because people tend to run up even more debt borrowing on credit cards with very high interest rates to make mortgage payments which exacerbates their liability in the long run if they aren’t able to turn things around.  This London Property Finder advises again make sure your mortgage is protected by appropriate insurance.

Technorati Tags: Arrears, Buy-to-let, London Property Finder, Mortgage arrears, Mortgage protection insurance, Repossessions

Tags: Arrears, Buy-to-let, London Property Finder, Mortgage arrears, Mortgage protection insurance, Repossessions