View more on these topics

CML gives advice on arrears for unregulated loans

The Council of Mortgage Lenders is warning members to protect consumers by treating unregulated mortgages as if they are regulated when borrowers fall into arrears.

Its guidance, which Money Marketing has been shown, says members must inform customers on which basis their arrears are being treated. If a non-regulated mortgage is being treated as a regulated mortgage, the information required by MCOB must be included.

It encourages lenders to comply with its statement of practice in handling arrears and repossessions, which was withdrawn in October 2004 so as not to clash with mortgage regulation, or treat all home loans as regulated. It has now made the guidance available again amid concerns over rising numbers of repossessions.

Last month, the CML revealed that it expects 15,000 homes to be repossessed this year compared with 10,310 in 2005. It blames the rise on the growing sub-prime market because lenders are taking a tougher stance on arrears and specialist borrowers are more likely to default.

The CML says: “The expectation is that members will continue to comply with the statement when dealing with arrears and possessions on unregulated mortgages.

“Alternatively, members may prefer to treat unregulated mortgages in arrears as if they were regulated mortgages and apply the requirements set out in MCOB.”

Mortgage Advisory Service head Stuart Wilson says: “You would be hard pushed to find a lender that would deliberately cause problems for customers and 99.9 per cent treat non-regulated mortgages as if they were regulated when it comes to repossessions and arrears.”

Recommended

Active expands overseas property proposition

Active Management Group is expanding its overseas operation after a deal with overseas property finder Parador.The move sees Active subsidiary Independent Mortgages Direct appointed as provider for all independent advice for the 4,000 plus clients that buy property across Europe via Parador each year.It will also mean that members of its mortgage club, Active Lending […]

Manager shot himself in the foot

I refer to the last paragraph of Simon Hudson’s recent article entitled, Business by appointment. It reminded me of a meeting that a not particularly popular manager called about 20 years for all the inspectors (as we were called then) in order to boost sales. At the end of a fairly pointless presentation, he finished […]

China: growth defence or another debt-fuelled boom?

By Douglas Turnbull, Head of Chinese Equities at Neptune Following recent stimulus efforts from Beijing, Neptune’s Douglas Turnbull examines how the government’s long-term reform agenda can be balanced with supporting growth and addressing structural challenges, and the investment opportunities arising from this.Click here to read more Important information: Investment Risks Neptune funds may have a […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com