Lenders Plan to Ease Home Repossessions Ahead of Boom in Mortgage Defaults

As they prepare for an increase in delinquencies, mortgage lenders have published their plans to reduce the number of people having their homes foreclosed. The Council of Mortgage Lenders (CML) said that although it was expected that outstanding mortgages and foreclosures are still low, economic prospects in Britain, the deterioration could lead to more homeowners who are in the LMC difficulties.The initiative aims to ensure that owners can not maintain mortgage repayments will lose their homes once all other measures have failed. Mortgage lenders are already required by the Financial Services Authority (FSA) for the political management of arrears to avoid seizure, unless there is no alternative. But no, the standard approach, and recovery policies differ lenders.In a letter to Chancellor Alistair Darling, the CML said its members have signed four measures to help maintain an embargo have minimum.Lenders Agreement to review its management policies and improve its backlog of work to comply with the new direction of the industry that have been issued by the CML. Borrowers who fall behind on payments will also include information explaining their lenders' management process arrears so that they can understand what to expect and how they treated.Lenders also adopt the so-called "pre -Action Protocol, which defines the steps that a lender must wait before taking a case, arrears to the courts to ensure legal action is a last resort.Finally, construction and the banks also need to be proactive helping people to plan for potential mortgage payments the higher end of their current contract. The Council wants the lenders to contact borrowers nearing the end of their agreement at a discount or fixed rate and time to convince contact the lender if they feel they have difficulties in May, the highest in the repayments.The CML Director General, said: "We continue to anticipate that the level of repayment of loans and mortgage assets will remain low, as has been provided. With the deteriorating economy and an incomplete safety net for mortgage borrowers, the LMC can not be complacent about prospects and challenges faced by lenders, borrowers and policy makers public. We continue to work closely with government ministers to us and we hope a clear statement of the position of his own government on a safety net for borrowers. He added that the CML has also found that the government should urgently improve support to owners who have a short-term loss of income.