Mortgages: The Power of Sale and Residential Property Consultation Paper CP55/09
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.