CH14 Flashcards
If customer falls into arrears, what must be issued?
Mortgage warning within 15 working days
What is maximum number of years a mortgage can be pursued under CML/UK finance?
Six years
What is arrangement to pay if customer fallen into arrears?
Paying more than scheduled repayment for specified period
If borrower has temporary difficulties, what can be done?
Freeze arrears subject to review
What is Child Tax Credit?
Claimed by person/couple responsible for child > 16 or < 19 in FTE
What is Working Tax Credit?
Payment to top up earnings of working people on low incomes, payable to those working > 16 hours pw with children or >30 hours without children
When can Income Support be claimed?
Those with no income
Part time earnings and in receipt of other benefits
What is JSA?
Benefit claimed by unemployed and actively seeking work, payable for 26 weeks
What must a claimant be receiving to be eligible for SMI?
- Income support.
- Income-based JSA.
- Income-related ESA.
- Pension credit.
- Universal Credit.
How is SMI tested?
Means tested, not eligible if savings > £16k
What are the rules for SMI if mortgage completed after 1995?
No SMI payable for first 39 weeks
Payments calculated by reference to standard rate of interest and recalculated each time moves by 0.25%
Payable up to £200k (or £100k if receiving pension credit)
Standard rate based on Financial Statistics published by ONS
Made direct to lender
Generally, home improvements do not qualify
What was change to SMI in April 2018?
Now loan which must be repaid when property sold or from estate
What is mortgage rescue scheme?
Gov backed mortgage rescue schemes administered by local housing guidelines, help borrowers stay in homes if risk of possession
What are legal remedies of lender to recover debt set out in?
- the Law of Property Act 1925 (in England and Wales); and
- the Conveyancing and Feudal Reform (Scotland) Act 1970 (in Scotland).
What are three possible outcomes of action if possession actioned?
- An outright possession order may be granted, giving the lender the right to apply to the court for a warrant to enter the property and obtain vacant possession after 28 days.
- A suspended possession order may be granted – this imposes a repayment schedule on the borrower and gives the lender the right to petition for a warrant if the borrower fails to comply with this schedule.
- The case may be adjourned.
