ROOF Blog

A coalition of charities, including Shelter, which pushed for better government measures to help vulnerable people stay in their homes, has warned that while mainstream lenders have improved their treatment of homeowners, those with sub-prime and second charge loans were not getting the same treatment. Research has found that 51 per cent of advisers had seen an improvement in the procedures from mainstream lenders, but only one in five have seen any improvement in arrears collection for the sub-prime and remortgaged homeowner. 

The Office of Fair Trading (OFT) launched a consultation today on draft guidance for businesses engaged in second charge lending. The draft guidance sets out the standard of behaviour the OFT expects from businesses engaged in second charge lending and covers issues such as customer care, advertising and selling techniques, and practices around managing arrears or defaults. Second charge lending allows existing mortgage holders to borrow money by securing the loan against their home.