7
Jan
BBA moves to cut down repossessions
Banking regulators have introduced new measures to cut down on
repossessions in the UK housing market.
Under the terms of the amendments to the Borrowing Revised code,
mortgage providers will be compelled to contact homeowners who are
at risk of defaulting on their mortgage repayments. The two parties
will then work out a payment plan.
Previously the onus had been on borrowers who were struggling with
repayments to make contact with their provider.
The move has been proposed by the British Banking Association (BBA)
and is aimed at reducing the number of repossessions, which are
expected to increase significantly next year.
BBA chief executive Angela Knight told the Independent: "Banks will
have to adhere to this because this will be a contractual
requirement as part of their membership of the BBA. We are not
going to wait and watch as consumers get into difficulties.
"We would urge anyone facing difficulties to first contact their
bank. This should be their first port of call. But we will also
proactively contact them."
News of the reform to the regulations comes after the Council of
Mortgage Lenders recently predicted that repossessions are set to
increase by 75 per cent to 30,000 this year.
