Mortgages -
BBA: Adverse mortgage holders to be given help - 07/01/2008
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New guidelines, aimed at helping Britons who are having difficulty with their mortgage repayments, are to come into effect.
The measures, which will see mortgage lenders obliged to personally contact customers who are at risk of defaulting on their loans were formulated by the British Bankers' Association (BBA), the Forbes news agency reports.
It is hoped that the BBA's move will help to reduce home repossession numbers, which particularly affect those on adverse mortgages.
Indeed, it was the collapse of the US adverse mortgage sector due to rising repossessions which sparked the ongoing credit crunch on the global financial markets.
Brian Capon at the BBA said: "It's always been best practise for banks to contact customers who appear to be in difficulty, and offer to talk through their finances ... but this is now being brought into the Banking Code."
The new home default guidelines are anticipated to take effect this March.
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