The Council of Mortgage Lenders (CML) has welcomed the Treasury Committee's findings that the majority of lenders are taking pro-active steps to support consumers in mortgage difficulties.

Lenders already show significant forbearance to borrowers facing temporary difficulties, to enable them to keep their homes where this is possible.

Repossession is a last resort. This is underpinned by FSA regulation and through the pre-action protocol in the court system. CML has issued comprehensive industry guidance and consumer information to help the industry and borrowers identify fair practices. These mechanisms apply to all first charge lenders, whether mainstream or not.


CML Head of Policy Jackie Bennett said: "The industry is fully engaged to help its customers through the recession where they have a good prospect of being able to get back on track and sustain their home-ownership in the long term.

"Lenders have worked hard to ensure that treating customers fairly is at the centre of their arrears management. This doesn’t necessarily mean that consumers won't be charged, but it does mean that the charges will be a reasonable reflection of costs and that they will be applied in ways designed not to exacerbate the borrower's financial problems.

"We will be publishing our arrears and possessions figures next week. These are likely to demonstrate further that lenders remain committed to helping borrowers who fall into difficulty, where those borrowers are talking to their lenders and committed to helping themselves."

(CD/JM)