New repossession rules to help homeowners
Gordon Brown has issued new guidance in order to protect homeowners facing repossession.
All lenders will now have to demonstrate to the Courts that they have exhausted every avenue with the homeowner before entering into the repossession process.
In the summer months, the Financial Services Authority suggested that some lenders were being too aggressive with their repossession policies, but hopefully the new guidance will ensure this does not happen in the future.
Homeowners could be offered alternatives such as full or partial repayment holidays; changing the type of mortgage or extending repayment terms.
In line with the Government proposals, the Council of Mortgage Lenders has issued their own guidance for mortgage providers on how best to deal with homeowners with mortgage arrears.
Recently there have been reports regarding rent-buy-back schemes after some companies had defrauded homeowners by buying their homes and then only allowing them to stay in the rented home for 6-12 months and then evicting them.
With this in mind the Government is going to publish a consultation paper on bringing sale-and-rent-back schemes under FSA regulation.
Lyndon Campbell, Head of Conveyancing at Simpson Millar LLP states: "Homeowners need to be supported during the current economic climate and any government initiatives that help to protect homes and their owners from being repossessed or evicted can only be welcomed."
If any of the issues raised in this article affect you or your family, our conveyancing team may be able to help you avoid repossession. Call our friendly, no obligation team now on 0345 357 9000.
Further information: CML Industry Guidance