Buy to let mortgages 'unaffected' by law change

30 December 2009

Written by Gavin Elley

Buy to let mortgages will not be affected by the Ministry of Justice's changes to repossession laws, it has been claimed.

Yesterday (December 29th) the ministry announced proposals to better protect borrowers faced with repossession.

Current law means that mortgage lenders can sell an owner-occupied property without first getting approval of the courts - but the Ministry of Justice wants to close this loophole.

It comes as it was also announced that the government's Housing Possession Court Duty schemes had helped thousands of families facing eviction.

Some 33,176 people were helped by the schemes between October 2008 and September 2009 in England and Wales.

Of this figure, 76 per cent of those helped could return to their properties immediately after repossession hearings, which may have otherwise resulted in evictions, it was reported.

Housing minister John Healey said: "Thanks to this government action, repossessions are running at half the rate if the 1990s … But we know the risk of repossession will continue through next year … That's why we want to close this loophole."

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