http://www.legislation.gov.uk/uksi/2015/910/schedule/2/paragraph/19/made
The Mortgage Credit Directive Order 2015
en
King's Printer of Acts of Parliament
2016-07-27
FINANCIAL SERVICES AND MARKETS
This Order transposes in part Directive 2014/17/EU of the European Parliament and of the Council of 4th February 2014 on credit agreements for consumers relating to residential immovable property and amending Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No 1093/2010 (“the mortgages directive”) (OJ L 60, 28.2.2014, p.34). The Financial Conduct Authority (“FCA”) is responsible for transposing other parts of the mortgages directive. A transposition note setting out how the mortgages directive will be transposed into UK law will be available from Her Majesty’s Treasury, 1 Horse Guards Road, London SW1A 2HQ or on HM Treasury’s website (www.gov.uk/government/organisations/hm-treasury).
The Mortgage Credit Directive Order 2015
SCHEDULE 2Requirements for registered consumer buy-to-let mortgage firms
Conditions applicable to creditors and credit intermediaries
Sound execution of consumer buy-to-let mortgage contracts and related rights
Arrears and possession19
1
A creditor must exercise reasonable forbearance before initiating possession proceedings.
2
Any charges that the creditor imposes on the borrower arising from the borrower’s default must be no greater than is necessary to compensate the creditor for costs incurred by the creditor as a result of the default.
3
Where the price obtained for the secured property affects the amount owed by the borrower under the contract, the creditor must take all reasonable steps to obtain the best possible price for the secured property.
4
Where, after possession proceedings, outstanding debt remains, the creditor must put in place measures to facilitate repayment by the borrower.