Copy article

Mortgage repossession rules

Journalist: Emma Lunn, Freelance

ended 30. June 2025

Looking for mortgage/personal finance experts to comment on news that protect homeowners from repossessions might be scrapped. Rules that protect UK homeowners from repossessions may be scrapped | Financial Conduct Authority | The Guardian

The feature is for Saga so comments need to be aimed at over 50s and explain:

Why the charter giving a 12-month grace period was introduced in 2023 and why the FCA is considering scrapping it now?

How will scrapping the charter affect homeowners aged over 50 in arrears?

Without the charter in place, what's the normal repossession process/timeline for borrowers in mortgage arrears?

6 responses from the Newspage community

Copy all

Copy

Editor
David Stirling
Independent Financial Adviser at Mint Wealth
For many over-50s on fixed incomes or approaching retirement, this isn’t just red tape being cut, it’s the safety net being yanked away. The 12-month grace period was brought in when lenders and regulators realised people were one rate rise away from financial ruin. Scrapping it now, while rates remain high and wage growth flat, feels less like policy evolution and more like institutional amnesia.
Copy

Editor
Rohit Kohli
Director at The Mortgage Stop
The Charter came in during a national crisis, but just because the pandemic is over doesn’t mean the pressure is. We’ve moved from one crisis to another, and scrapping protections now ignores the reality facing many, espeically those over-50 dealing with higher living costs and health or caring responsibilities. Red tape can be cut, as Rachel Reeves set out - but not at the cost of the most vulnerable. Reforms must protect people, not just profit billion-pound corporations. The FCA should ask itself - are we reviewing what helps consumers, or just what suits the lenders and government?
Copy

Editor
Rob Peters
Principal at Simple Fast Mortgage
Scrapping the repossession charter is a double-edged sword. Yes, it was introduced in the chaos of 2023 to protect homeowners from sudden repossession, and conditions have stabilised since then.

But to be clear, removing it now still leaves vulnerable over-50s exposed. Without this protection, homeowners aged 50+ who fall behind on payments could face faster legal action from lenders. For many in this age group approaching retirement, this is worrying, as income options narrow with age and health or employment changes can make catching up on arrears difficult. Lenders will need to step up with proactive forbearance, or we risk swapping short-term stability for long-term damage to homeowners’ security.
Copy

Editor
Samuel Mather-Holgate
Managing Director & IFA at Mather and Murray Financial
The charter was introduced to soften the blow of sky high mortgage rates, specifically for those coming off a fixed rate from when rates were at a record low. Scrapping this would return the industry to normal, but will hurt. There will be many more owners looking at lifetime mortgages as a result of this, if they intend to stay in their home.
Copy

Platinum
Elliott Culley
Director at Switch Mortgage Finance
It is in the interest of all parties to communicate and work together to try and avoid a repossession of a property. Hopefully mortgage lenders remain open minded to take the right action at the right time.
Copy

Patricia McGirr
Founder at Repossession Rescue Network
There are two sides to this, but only one pays the price. Yes, the charter brought a level of protection that helped thousands stay in their homes. And yes, indefinite grace periods can breed complacency, both from borrowers and lenders. But let’s not pretend this is a balanced trade-off. For homeowners over 50, often dealing with health issues, caring responsibilities or reduced income, repossession isn’t just a financial event. It’s a fracture in the foundations of their life at a time when exit options are limited. So fine, review the charter. But don’t scrap it without putting something better in its place. Because one side gets paid either way. The other gets packed up and pushed out to become another sad statistic. That’s not policy. That’s politics.