Repossessions - 6 months period of grace
It has been announced today that the Royal Bank of Scotland (RBS), who also own the Natwest bank, will be allowing mortgage payers who default on repayments, a 6 month period of grace before legal action is started.
Under current legislation, legal action and repossession proceedings can be taken after 2 months if mortgage payments are in arrears.
RBS is now 60% owned by the government, and will have been under extreme pressure to show a more lenient approach to repossessions. It is expected that other banks will follow this move.
Although the current legal limit at which repossession action may be started is 2 months, most banks already give a longer period of grace than this, os in practical terms it is unclear how this will affect the rate of repossessions which has been rising rapidly in recent months.
Under current legislation, legal action and repossession proceedings can be taken after 2 months if mortgage payments are in arrears.
RBS is now 60% owned by the government, and will have been under extreme pressure to show a more lenient approach to repossessions. It is expected that other banks will follow this move.
Although the current legal limit at which repossession action may be started is 2 months, most banks already give a longer period of grace than this, os in practical terms it is unclear how this will affect the rate of repossessions which has been rising rapidly in recent months.
Labels: RBS, repossesion
posted by ukmove at
8:24 AM
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