Michael Coogan, director general of the Council of Mortgage Lenders (CML), has written to the Chancellor outlining the steps that need to be taken by the CML, the Government and borrowers to help those that face mortgage arrears and the threat of repossession.

According to the CML, repossession should be and already is a last resort. CML members have committed to four measures to help minimise difficulties for borrowers: to analyse current arrears management policies and to implement any changes that are needed; to provide borrowers with information on the arrears management process, so they can better understand what to expect and that they will be fairly treated; to support the principle of a per-action protocol, this will provide extra assurance that only appropriate cases go to court and lastly to provide borrowers with plenty of notice when they are coming to the end of their initial deal and moving onto a higher rate.

The letter goes on to list three concerns which they feel that the Government needs to address. The impact of different regulatory structures for first and second charge secured lending on consumers, the inadequacy of the state support scheme for mortgage borrowers and regulation of sale and leaseback companies.

With regards to what borrowers can do for themselves, Bernard Clarke, communications manager for the CML, told PIN: “It is very important that the borrower contacts the lender and has a discussion regarding the problems they are or could be facing. This will allow for the widest range of options to be available to them.”