Watch­dog rul­ing cuts house re­pos­ses­sions by 93pc as 2 mil­lion take mort­gage hol­i­day

The Daily Telegraph - Business - - Front Page - By Lucy Bur­ton

PROP­ERTY re­pos­ses­sions have plunged 93pc af­ter home­own­ers rushed to use mort­gage hol­i­days and banks were banned from seiz­ing the houses of coro­n­avirus-hit cus­tomers.

Just 90 owner-oc­cu­pied homes were re­pos­sessed in the sec­ond quar­ter of 2020, a drop of 93pc from a year ear­lier. There were 130 buy-to-let prop­er­ties taken into pos­ses­sion, down 80pc on the same pe­riod of 2019, ac­cord­ing to bank trade body UK Fi­nance.

The plunge comes af­ter banks were or­dered to treat home­own­ers fairly by the Fi­nan­cial Con­duct Au­thor­ity and given a stern warn­ing against evict­ing any cus­tomers. All re­pos­ses­sions were banned un­less the home­owner agreed or the prop­erty was empty.

The watch­dog also told banks and build­ing so­ci­eties to grant mort­gage pay­ment hol­i­days to all home­own­ers who re­quested one to help them get through the cri­sis. Over 2 mil­lion mort­gage pay­ment de­fer­rals have now been ap­proved, UK Fi­nance said, with just un­der 1m still in place.

How­ever, there are con­cerns that the hun­dreds of thou­sands of renters who now owe money to their land­lord could be kicked out once they ex­ceed eight weeks of ar­rears.

Rules set up at the start of the cri­sis blocked evic­tion cases from be­ing heard be­fore Aug 24. Mort­gage lenders should not start or con­tinue court ac­tion for re­pos­ses­sion un­til Oct 31.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.