Ban on repossessions extended for mortgage borrowers

The Financial Conduct Authority is extending the ban on repossessions by two months until April 1, in light of the pandemic.

The regulator says lenders should not enforce repossessions before that date, citing the “worsening Coronavirus situation and the government’s tighter Coronavirus-related restrictions which mean that consumers could experience significant harm if forced to move home at this time as a result of repossession proceedings.”

Lenders back the move for both buy to let and residential mortgages but although they will not issue a warrant for eviction or enforce an existing warrant before April 1 they can commence court action, including obtaining a possession order from the courts.

UK Finance, the trade group which represents lenders, says the extension will “help provide reassurance to both residential and buy to let borrowers that they will not have their homes repossessed at this difficult time.”

This move mirrors the approach taken through various eviction bans in the private and social rental sector.

Kindly shared by Estate Agent Today

Main article photo courtesy of Pixabay