Repossession and voluntary surrender – BTL As far as buy-to-let (investment) properties are concerned, voluntary surrender at a current valuation can make sense for a stressed borrower having difficulty in servicing the loan – for example if the rental income is nil or smaller than the interest outlay on that part of the loan corresponding to the current market value of the property.
Investments are valued and classified into appropriate categories, as per international best practices. To take into account the vagaries of interest rate risks, a prescription for meeting a targeted Investment Fluctuation Reserve out of the realised profits from sale of investments within a stipulated time frame has also been prescribed recently.