Re: PFTF Jan 24 2012
Repossessions set to soar as obscure EU clause means those in arrears for just three months will default on loans

Homeowners could face soaring mortgage costs because of an obscure EU directive being pushed through the European Parliament.
British lenders will be forced to start repossession proceedings when borrowers fall behind on their payments after three months rather than six as at present.
Thousands more people will have to hand over the keys to their properties if the change takes effect, the Financial Times reported.

With the risk of default much higher, it could cost banks 15 to 20 per cent more to lend.

This is likely to be passed onto homeowners - or lenders will make less mortgages available.

It is being brought in by the EU to make banks safer and reduce the risk of another financial crisis.
The reform, which could have a wide-ranging impact, is hidden in an obscure clause within a bank capital directive.
Banks will also be given less time to restructure payments to help homeowners avoid defaulting - in a process called forbearance.

The changes, which are being discussed by the European Parliament, could come into effect as soon as next year.


Read more: http://www.dailymail.co.uk/news/article ... z1kIuYVxh9