NatWest and RBS pledge leniency
(26 February 2010 –UK) NatWest and RBS have announced a new six month repossession pledge to assist customers falling into arrears.
The banks have said that they will not commence repossession proceedings for a full six months after a customer first falls into payment arrears, to help ease pressure on homeowners struggling to meet their mortgage repayments.
The pledge comes as recent market figures from the Council of Mortgage Lenders (CML), suggests that repossessions could rise by as much as 15 percent in 2010.
Currently the banks’ repossession figures remain below the industry average.
Teresa Perchard, Citizens Advice, said that Citizens Advice warmly welcomes this announcement by the banks. Giving customers who fall into arrears this important breathing space, perhaps because they have lost all or part of their income, gives peace of mind in the short term and a sensible period of time for people to get advice and plan what they will do rather than panic.
Citizens Advice would urge all mortgage lenders to follow the example set by the banks here and either renew their existing commitments to supporting customers in arrears, or for those who have not yet adopted best practice, to make a commitment now to do so.
The pledge comes as recent market figures from the Council of Mortgage Lenders (CML), suggests that repossessions could rise by as much as 15 percent in 2010.
Currently the banks’ repossession figures remain below the industry average.
Teresa Perchard, Citizens Advice, said that Citizens Advice warmly welcomes this announcement by the banks. Giving customers who fall into arrears this important breathing space, perhaps because they have lost all or part of their income, gives peace of mind in the short term and a sensible period of time for people to get advice and plan what they will do rather than panic.
Citizens Advice would urge all mortgage lenders to follow the example set by the banks here and either renew their existing commitments to supporting customers in arrears, or for those who have not yet adopted best practice, to make a commitment now to do so.
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