Oral question asked in the House of Lords, by Lord Elystan-Morgan (Crossbench). It was answered on Tuesday, 28 April 2009.

Home Owner Mortgage Support Scheme

Question: My Lords, following the question of the noble Lord, Lord Best, is it not the case that extensive powers are already vested in judges under Section 36 of the Administration of Justice Act 1970? These powers allow the judge to postpone an application or, indeed, suspend a possession warrant, where there is a possibility that a family will be able to pay and repay all debts within the total period of the mortgage. That is very important, for however parlous the situation might be now, if the mortgage has 20 years to run, it may very well be that that can be achieved within the terms of that provision.

Answer: My Lords, I am very grateful for the noble Lord’s advice. He has enormous experience in this area. Clearly, repossession is not inevitable, even after a claim has been issued. Provided the borrower is able to pay their arrears in a reasonable period of time, or place the property on the market to effect a sale, and the lender does not have satisfactory reasons for not agreeing, the court does have the power to adjourn the proceedings. So there clearly are different ways of easing this situation.

Secondary information