Response to consultation on Guidelines on arrears and foreclosure

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Question 2: Are there any additional requirements that you would suggest adding to the Guidelines? If so, outline the reason(s) for each proposed additional requirement.

A requirement setting out the borrower’s obligation to co-operate with the lender should be included. Where a borrower does not co-operate, for example by ignoring correspondence (indicating that he/she might be unwilling rather than unable to meet repayments), then the protections under the Directive would not apply to the non-cooperating borrower and the lender should be permitted to proceed to the next stage in the process.

Also, it is important that any guidelines covering “non-primary dwelling” type residential mortgage borrowers i.e. buy-to-let borrowers, as a result of the national discretion in the MCD to include buy to let properties within the scope being applied, are formulated so that they do not either: (a) give rise to legal uncertainty or (b) unnecessarily extend mortgage resolution processes beyond the category of family homes, where contrary to buy-to-let which is a ‘discretionary’ type of ownership, the focus is keeping a roof over a family’s head.

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