When the Bank of England, the FSA and the UKAR (the body that looks after £80bn worth of mortgages bailed out by the taxpayer) all choose to run with press releases on the same topic in the same week you can only conclude that there is a concerted effort going on to educate the public. The topic in question is that of “Lender forbearance”. Unlike previous recessions Mortgage Lenders have not rushed headlong to repossess properties in arrears but have exercised “Lender forbearance”. Examples include payment holidays and switching loans from repayment of capital and interest to interest only. It is said that some Lenders have been too lenient and some “tough love” is called for. Whilst forbearance can help some to dig themselves out of a financial hole others are just digging deeper. What’s more both the Bank of England and the FSA suspect that Lenders are using forbearance to disguise the number of loans they have in default. This gives a false impression of their financial resilience. The problem is that if Lenders suddenly start off loading more repossessions an already depressed market could see a significant double dip
Compliance Officer for Legal Practice
Andrew oversees the Firm’s Quality Systems and is committed to making sure that our client’s receive the very best customer care and attention along with the best marketing and legal advice in the area.
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