The MoJ has been compelled to act on mortgage remedies, says Sarah Greer
The Council of Mortgage Lenders’ (CML) prediction for 2009 is that mortgage possessions will rise to about 75,000 by the end of the year. Of these repossessions, the CML expects “a sizeable share” to be buy-to-let borrowers, who have been particularly hard hit by the nervousness of lending institutions over the past months. In the current financial climate, attention has inevitably been focussed on the mechanics of gaining possession of and selling a mortgaged property where the mortgagor has defaulted on repayments. A recent High Court decision in Horsham Properties Group v Clark [2008] EWHC 2327 (Ch), [2008] All ER (D) 58 (Oct) has caused such concern that the Ministry of Justice (MoJ) has started an urgent review into mortgage remedies, and how the law protects borrowers in mortgage arrears.
Background: possession and sale
It is well known that the lender has the right to take possession “as soon as the ink is dry” on the mortgage agreement (Four- Maids Ltd v Dudley Marshall (Properties) Ltd
