New Legislation - Keeping People in their Homes?

By jasinnottadmin, Tuesday, 27th August 2019 | 0 comments

New legislation in place since August 1st, 2019 reinforces the special status of a person’s principal private residence in mortgage arrears proceedings.  Repossession of a principal private residence should remain an action of last resort.


Courts must take into account certain matters when deciding whether to grant a possession order to a lender in such cases.


The matters which a court must consider when deciding whether to make or refuse a possession order in such cases are:

  1. Whether the making of the order would be proportionate in all the circumstances, including:
    -  the total amount of debt outstanding on the mortgage or associated loan agreement
    -  the amount of arrears payments due
    -  the advised market value of the principal private residence at the date on which proceedings commenced
  2. The circumstances of the borrower and his or her dependants for whom the property is their principal private residence
  3. Whether the lender has made a statement to the borrower of the terms on which it would be prepared to settle the matter in such a way that the borrower and his or her dependants could remain in their home
  4. Details of any proposal put forward by or on behalf of the borrower either:
    -  to enable him or her, or any dependants, to remain in the principal private residence; or
    -  to secure alternative accommodation;
  5. Any response of the lender to the borrower’s proposal to remain in the principal private residence
  6. The conduct of the parties in any attempt to find a resolution to the borrower’s mortgage arrears


We welcome this new legislation and the special status of a principal private residence.  Keeping people in their homes should be a priority and it is a positive move to ensure that the enforcement practices of lenders will take account of that.  For further advice, contact us today. 

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