This MARP framework is aimed at ensuring a more consistent and transparent approach by lenders when dealing with arrears cases. Additional protections introduced by the Code include a requirement that legal action cannot be taken against borrowers as long as they adhere to an arrangement agreed with their lender.
Often referred to as “the moratorium”, this is a key measure which allows time and space for borrowers to deal with their difficulties. The Code also ensures that borrowers in financial difficulties cannot be required to change from an existing tracker mortgage to another type of mortgage as part of a move to a new payment schedule.