Mortgage Arrears in UK Law

Leading Cases
  • Paragon Finance Plc v Pender
    • Chancery Division
    • 25 Nov 2003

    There is no evidence to show that the Claimants have embarked on a policy of forcing people to redeem their mortgages (item (b)). Further it appears from paragraph 35 of the Nash judgment that what the court of appeal is contemplating is a particular policy addressed to a particular borrower. There is nowhere any suggestion in Mr Higgins's report (for self evident reasons) to suggest that the Defendants have been singled out.

    One has to contrast that with borrowers who borrow on a self-certified basis which either is not true or which changes and who then find themselves unable to pay the mortgages, which they took out in more stable financial times. It is a popular practice nowadays to believe that merely because circumstances have changed adversely that someone else is to blame. I have had no explanation, for example, as to why the Defendants have not paid any mortgage payments for many years.

  • Ashley Guarantee Plc v Zacaria
    • Court of Appeal (Civil Division)
    • 20 Set 1991

    The principle, which Slade L.J. called "the Mobil Oil principle", can be stated thus. Contract and statute apart, a legal mortgagee's right to possession of the mortgaged property cannot be defeated by a cross-claim on the part of the mortgagor, even if it is both liquidated and admitted and even if it exceeds the amount of the mortgage arrears.

  • Royal Trust Company of Canada v Markham
    • Court of Appeal (Civil Division)
    • 17 Jul 1975

    A characteristic instance in which that sole exception is applicable is where the mortgagor has entered or is about to enter into a contract for the sale of the property at a price which will enable the mortgage to be paid off in full.

  • Watchtower Investments Ltd v Payne and another
    • Court of Appeal (Civil Division)
    • 20 Jul 2001

    The court must consider all the circumstances including the documents relating to the agreement and may well have to ascertain objectively the purpose of the borrowing. For the reasons already given I reject Mr. Hodgkinson's submission that it is only permissible to look at the contractual documents. The purpose of the court's consideration is to arrive at what in reality is the true cost to the debtor of the credit provided.

  • Paragon Finance Plc v Nash and Another; Same v Staunton and Another
    • Court of Appeal (Civil Division)
    • 15 Oct 2001

    I cannot accept the submission of Mr Malek that the power given to the Claimant by these loan agreements to set the interest rates from time to time is completely unfettered. If that were so, it would mean that the Claimant would be completely free, in theory at least, to specify interest rates at the most exorbitant level.

  • National Home Loans Corporation Plc v Giffen Couch & Archer (A Firm)
    • Court of Appeal (Civil Division)
    • 18 Jun 1997

    Mr Davidson QC for the defendants submitted that the judge had failed to see the distinction between points going to security in the event of default on a borrower's personal covenant, and points going to the worth of the personal covenant. Mr Serota contended that there was no such distinction because the personal covenant was part of the security. As Mr Davidson said, security is taken by the lender for the performance by the borrower of the personal covenant.

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Legislation
  • Law of Property Act 1925
    • UK Non-devolved
    • 1 de Enero de 1925
    ...... .   . ( c . ) A charge by way of legal mortgage;. .   . ( d . ) Land tax, tithe rentcharge, and any other. similar ...money and the income thereof (including. any arrears of interest) and to release or postpone. the priority of the mortgage debt ......
  • Building Societies Act 1962
    • UK Non-devolved
    • 1 de Enero de 1962
    ......of the funds of the society upon security by way of mortgage of. freehold or leasehold estate. . (2) A society so established may be ...together with any arrears of interest then outstanding. . (8) An advance made jointly to two or ......
  • Real Property Limitation Act 1833
    • UK Non-devolved
    • 1 de Enero de 1833
    ...... be a Tenant at Will, within the Meaning of this Clause, to his Mortgagee or Trustee. S-VIII . No Person, after a Tenancy from Year to Year, to ...S-XLI . No Arrears of Dower to be recovered for more than Six Years. XLI No Arrears of Dower ......
  • Limitation (Northern Ireland) Order 1989
    • UK Non-devolved
    • 1 de Enero de 1989
    ....... 16. Time limit: actions upon judgments and for arrears of interest on judgment debts. . 17. Time limit: successive conversions .... Actions in respect of mortgages and charges . 32. Time limit: incumbrancers claiming sale of land. . 33. ......
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Books & Journal Articles
  • The Mortgage Arrears Pre‐Action Protocol: An Opportunity Lost
    • Núm. 72-5, Septiembre 2009
    • The Modern Law Review
    In February 2008, the Civil Justice Council circulated for consultation a mortgage arrears pre‐action protocol that proposed some of the most radical and significant reforms of the repossession pro...
  • Book Review: Home Ownership in a Risk Society. An Analysis of Mortgage Arrears and Possessions
    • Núm. 11-3, Septiembre 2002
    • Social & Legal Studies
  • Macroeconomic factors influencing UK household loan losses
    • Núm. 20-4, Noviembre 2012
    • Journal of Financial Regulation and Compliance
    • 385-401
    Purpose: The purpose of this paper is to investigate the effects of macroeconomic factors on secured and unsecured household loans from UK banks. Design/methodology/approach: The approach uses Vec...
    ......Theinfluence however depends on the type of arrears. Changes in house prices, interest rates andunemployment rates have a ...Unemployment stands out as the major factor thatinfluences both mortgage and creditcard arrears. The estimated results show that the main factors ......
  • Index to Volume 11, 2002
    • Núm. 11-4, Diciembre 2002
    • Social & Legal Studies
    ...... An Analysis of Mortgage Arrears and Possessions , reviewed by Helen Carr, 11(3), 455–456 F ......
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Law Firm Commentaries
  • Real Estate Litigation interactive Possession and Enforcement Tool Kit
    • JD Supra United Kingdom
    Dentons’ Real Estate Litigation team has created an interactive Possession and Enforcement Tool Kit for England, Wales, Scotland and the Republic of Ireland. Setting out guidance on some of the mos...
    ......–A court claim can be brought in respect of the recovery of rent arrears or service charges. Pre-action protocols will still apply.•Landlords ... on possession proceedings on 20 September, it is now possible for mortgage firms to begin possession proceedings where customers have failed to keep ......
  • Weekly Financial Services Regulatory Update - Week To 21.02.14
    • Mondaq United Kingdom
    ......: Yorkshire Building Society Group to refund GBP 8.4 million in arrears administration fees. Yorkshire Building Society Group (YBS), which ..., Chelsea Building Society, Barnsley Building Society and Accord Mortgages has voluntarily agreed to refund all administration fees for mortgage ......
  • Mortgage Possession
    • Mondaq United Kingdom
    ...... Following the “credit crunch”, the Council of Mortgage Lenders predicted huge rises in borrower arrears and repossessions. In 2009, the number of properties repossessed by lenders peaked at approximately 46,000 homes. Whilst the numbers of properties ......
  • Putting Customers First | Key Issues Facing The Building Society Sector Post MMR
    • Mondaq United Kingdom
    ...Since the Mortgage Market Review (MMR) was finalised in October 2012, in common with ... regarding mortgage advice, responsible lending and mortgage arrears handling - using the FCA's rules and guidance as the assessment benchmark ......
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