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When everyone has a home

028 9024 5640: Housing & Debt Helpline for Northern Ireland

Local borrowers may be in line for compensation

In 2014, Housing Rights represented borrowers in a successful high court case that challenged the practice of payment of arrears being automatically included in the mortgage installment, without borrowers knowledge or consent.

Today, the Financial Conduct Authority (FCA) has announced that this practice is likely to be in breach of its rules. It is to consult on new guidance on how lenders deal with clients in arrears with their mortgage. The guidance will cover remedies for customers who may have been negatively impacted by how their lender has dealt with arrears in the past.

Speaking about today’s announcement Chris McGrath, Solicitor with Housing Rights commented: 

“We welcome today’s announcement from the FCA. We want to see an end to this practice in the mortgage industry. It is important that lenders can be held to account regarding practices that lack transparency and can lead to harm.  Housing Rights hope that any award of compensation to those affected is proportionate to the negative impact that this would have on already distressed families.”

Housing Rights has assisted almost 5,500 households from Northern Ireland in mortgage difficulties over the past 3 years.

The charity is urging anyone worried about mortgage debt, or who feel they may have been impacted by this issue, to contact the Mortgage Debt Advice Service on 0300 32 30 310 for free independent advice.

Notes to Editors

Spokesperson available. Contact Frances on 028 9024 5640 for further information.