Repossession Rules Tightened

Repossession Rules Tightened

There has been a considerable increase in the numbers of repossessions and indeed there has been an increase in the number of ‘sub-prime’ lenders enforcing repossession much earlier.
Lenders such as Northern Rock have recently been found to be one of the most aggressive with nearly 1 in every 100 mortgages being repossessed.  The Council of Mortgage Lenders (CML) estimates that 45,000 properties will be repossessed this year - up from 26,200 a year ago.
As a result the Government are issuing new guidance rules to the Courts to ensure that every alternative possibility has been explored and exhausted before repossession is granted.
At the same time the Council of Mortgage Lenders (CML) is issuing revised guidance to lenders to echo the same.
It should be remembered though that both of these initiatives are guidance rather than law and it is the financial regulator, the Financial Services Authority’s own rules that govern how arrears and repossession are handled.

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