Mortgage Repossession 'Last Resort'

It has emerged that new legislation will require that judges in Northern Ireland should now see repossession proceedings against homeowners as a last resort.

According to details just made public, this is part of a repossession protocol which has been announced by the Lord Chief Justice, Sir Declan Morgan. It also includes a requirement that lenders demonstrate there is no reasonable alternative before a home can be repossessed.

NI Social Development Minister Margaret Ritchie (pictured here) today welcomed the fact that lenders seeking to repossess homes, should view it as a measure of last resort.

The protocol will come into effect in Northern Ireland on 5 October and if a lending institution seeks to repossess a property it will continue to do so through a Court Order. However, the Courts have introduced new arrangements to ensure the lender engages more with the borrower to seek agreement, before the Courts will consider issuing a repossession order.


Margaret Ritchie said: "These new protocols are a much needed boost for those people who at present get into mortgage difficulties and then suffer the shock of a repossession order landing on their doormat.

"The Courts should be very much a last resort for lenders to seek repossession and I welcome that this will now take place," she said, noting that helping those in genuine mortgage debt is a priority.

"I have increased significantly the money available for Housing Rights Service to ensure they have advisers who specialise in helping those in mortgage debt. These Protocols introduced by the Courts will provide further assistance."

Several other initiatives already exist to help those struggling with mortgage payments.

Support for Mortgage Interest , was introduced in January this year, and entitles homeowners on Income Support, income-based Jobseeker's Allowance, or income-related Employment and Support allowance, to support on mortgage interest payments after 13 weeks.

The Homeowners Mortgage Support which was announced last month is a UK wide Government backed initiative.

This Government guarantee scheme is appropriate for home owners who have encountered a short term reduction in income which impacts on their ability to meet their mortgage payments.

It will enable homeowners to defer a proportion of their mortgage interest payments for a maximum period of up to two years.

The main banks will determine eligibility in accordance with the criteria set by the Government.

(BMcC/JM)