23 Oct

Government protocol to protect mortgage payers announced

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".

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