23
Oct
Government protocol to protect mortgage payers announced
The government has announced a new protocol designed to protect
mortgage payers from repossession.
It has said that under new rules, lenders will not be able to take
buyers to court to repossess homes without first seeking
alternative payment arrangements.
Should a case go to court, the lender will be obliged to show they
have made attempts to agree a way for those in difficulties to meet
their payments.
This will ensure that "repossession is the last resort not the
first", chief secretary to the Treasury Yvette Cooper said.
Such moves could boost homebuying, as those who take out a mortgage
can do so knowing there is less chance of losing their home if
problems arise.
The announcement was welcomed by industry bodies such as the Royal
Institution of Chartered Surveyors (Rics) and the National
Association of Estate Agents (NAEA).
Rics policy officer James Rowland called the new protocol
"essential", while NAEA chief executive Peter Bolton King said the
news would come as a "welcome relief to many homeowners".
