Government announces rules to help homeowners

Over the past week the government has announced new regulations designed to protect struggling homeowners that could be at risk of losing their homes through repossession as a result of falling behind on repayments in the current difficult financial climate. The new protocol was put forward by the Civil Justice Council, and was approved by the Master of the Rolls.

Under the new regulations lenders will not be able to launch straight into court actions to repossess a home, but instead will have to follow strict guidelines in discussing alternatives and reaching agreements with the borrower. If the case does still go to court the lender will have to demonstrate that all other steps have already been taken.

The government is also looking to bring sale and rent back schemes under FSA regulations to minimise on the risk of homeowners getting ripped off if they decide to sell their property under one of these scheme, which have raised concern amongst some officials.

One official stated: “We need to make sure we help those who might be hardest hit in the tougher times ahead, ensuring repossession is the last resort not the first. We also want to make sure that vulnerable homeowners are protected from exploitation and dodgy deals.”