Plans to offer further help to homeowners who fall behind on their
Under the proposals put forward by the Financial Services Authority (FSA), a number of key measures will be introduced in a bid to lend a hand to borrowers in arrears and thereby reduce the likelihood of their having their homes repossessed.
These include barring lenders from adding early repayment charges on arrears charges and requiring them to keep records of any correspondence relating to arrears for a minimum of three years.
According to John Charcol, given that home repossessions are bad news for both lenders and borrowers, these latest proposals are good news all round.
Roy Boulger, senior technical manager at the
“The lack of a right for lenders to impose early repayment charges is a “key” element of these measures, he added.
Mr Boulger’s comments come soon after Shelter reported that more than one million UK households have used their