aboutproperty.co.uk Logo
 | News feeds | Join the mailing list | Make Homepage

Property news

Homeowner Mortgage Support Scheme backed by BSA

BSA urge borrowers to contact their lenders
BSA urge borrowers to contact their lenders

Thursday, 15, Jan 2009 12:25

The Building Society Association (BSA) is urging struggling borrowers to contact their lenders.

In a response issued today to the government, the Association welcomed the introduction of the Mortgage Support Scheme.

However, it cautioned that, although the scheme will represent an important new weapon in the fight against repossession, it remains concerned it will not help as many borrowers as the government expects.

In their response, the BSA said that the government's key message must be to advise borrowers to contact their lender at the earliest sign of repayment difficulty.

Paul Broadhead, head of mortgage policy at the BSA, said: "For building societies, taking possession of a property really is the last resort. They maintain good relationships with their customers to ensure that they can develop individual solutions to arrears problems, and this scheme could represent an important new tool for them.

"As such, we look forward to continuing to work with the Government as the scheme is developed further to ensure that it adds value over existing practices and that the most vulnerable borrowers in need of help are able to receive it."

  • The BSA said the objectives of the Homeowner Mortgage Support Scheme must be that:

  • The scheme adds value over existing practices and steps to help homeowners already available to lenders, ensuring that the most vulnerable borrowers in need of help are able to receive it;

  • The scheme needs to be practical and not onerous to administer;

  • The scheme should promote proportionate and realistic risk sharing between all the parties involved; and

  • High quality independent advice is available to ensure that this is the best course of action for the borrower.

    Mr Broadhead added: "It is vital that government understands that lenders have to hold increased capital for accounts in arrears, and if not considered fully, this scheme could have the unintended consequences of further stifling new mortgage lending."

    "However, it remains the case that as soon as borrowers believe they may have a problem, the most important thing is that they should contact their lender as soon as possible to allow the best solution for them to be determined."





    Comment on this story

    Share your views with the aboutproperty.co.uk readers.
    Name 

    Location 

    Email 

    Comment 

    Enter the text shown to the right

    User comments...

  • Marketplace

      From builders and DIY suppliers to decorators and garden supplies, home finance to heating and plumbing services, home furniture to accessories, bathrooms, bedrooms, kitchens and a whole lot more.

      Whatever you’re looking for you’ll find it in the aboutproperty marketplace – your gateway to all things home and garden related.

    Free Property Finder Service


    For your free guide to investing in uncertain times click here.

    Features

    BBQ season is upon us.

    x

    The Met Office has announced summer 2009 is likely to be a glorious affair, with temperatures reaching Mediterranean standards. So what better way to celebrate the forthcoming sunshine than with a barbecue?


    Overseas Property

    Brits "play it safe" with foreign property investment

    Brits "play it safe" with foreign property investment

    Foreign property investments in 2010 are likely to be 'safe bet' options for Brits, according to one industry expert.


    Property Finance

    Mortgage lending increases in June says Bank of England

    Mortgage lending has increased according to the latest official figures

    Mortgage lending reached a 14 month hight in June but is still far below traditionally normal levels, according to the latest data from the Bank of England.


    France

    Property abroad in France

    Aboutproperty considers the ever popular French property market as a recent boom seems to slow, perhaps making now the right time to pick up a bargain.


    Spain

    Property abroad in Spain

    Spain is the most popular destination for Brits looking to invest abroad and the most popular emigration destination in the world. But what is it that makes this country so enduringly popular? Aboutproperty investigates.