The revised Code changes the way all mortgage lenders must treat customers who are in arrears or prearrears, and, by setting rules, aims to take away the fear factor for troubled borrowers when they are dealing with their lenders.
At the heart of the revised Code is a requirement for mortgage lenders to establish a Mortgage Arrears Resolution Process (MARP) containing five key elements: every mortgage lenders’ process must include better communication with borrowers, a standard financial statement to gather financial information, an assessment process which considers the borrowers full circumstances and which is managed through a centralised Arrears Support Unit, a resolution process where the lender must explore alternative repayment schedules, and, an appeals process so the borrower can seek a review of a lenders decision.