Mortgages: The Power of Sale and Residential
Property Consultation Paper CP55/09
Ref:05.10
The above paper sets out for consultation provisional proposals
for restricting the power of sale of mortgage lenders in respect of
owner-occupied property. Mortgage lenders would only be
allowed to exercise the power of sale in the following
circumstances:
(I) with the prior approval of the
court; or
(II) the agreement of the
borrower(s).
The consultation is aimed at all persons,
organisations interested in the mortgage market in England and
Wales. The proposals only apply to mortgages of residential
owner occupied property and does not relate to the power of sale in
respect of other mortgages, including buy to let and other
commercial mortgages. The consultation takes place in the
context of wider Government action affording extra
protections for homeowners struggling with their mortgage
repayments.
The consultation can be accessed from the
Ministry of Justice (MoJ) website.
The deadline for the submission of responses
is 28 March 2010.
Posted 27.01.10