Information Release 5 February 2010
The Financial Regulator has today written to all mortgage lenders informing them that with effect from 17 February 2010, the Statutory Code of Conduct on Mortgage Arrears has been amended to require that a regulated firm must wait at least twelve months from the time arrears first arise before applying to the courts to commence enforcement of any legal action on repossession of a borrower’s primary residence.
The twelve-month requirement does not apply where the borrower is deliberately not engaging with the lender. The Financial Regulator is of the view that lenders should only seek repossession in less than twelve months in very exceptional circumstances and when all reasonable attempts to encourage engagement by the borrower have failed.
The amended code is available here.