New regulations which make repossession of homes from mortgage defaulters the last resort are being introduced by the Northern Ireland court service, it was announced today.
Lord Chief Justice Sir Declan Morgan said it would help ensure people would lose their home unless there was no reasonable alternative.
The Pre-Action Protocol on Possession Proceedings for the courts in mortgage repossession cases will come into effect from October 5th. It sets out steps lenders are expected to take before bringing a claim to the courts to ensure repossession is a last resort.
Lenders will now be expected to demonstrate they have tried to discuss and agree alternatives to repossession when borrowers get into trouble with their mortgage repayments.
It requires them to tell the court precisely what they have done to comply with the protocol. Lenders have been given the next two months to put in place any necessary procedures in order to comply.