ASTL warns against reintroduction of general ban on seizures

“We believe that any extension of the moratorium will significantly slow down the recovery towards which all stakeholders are working.”

The Association of Short-Term Lenders (ASTL) has written to HM Treasury, offering to collaborate on any potential extension of the enforcement moratorium following the latest nationwide foreclosure.

In the letter, the ASTL says: “The health of the nation is paramount, and no member would knowingly seek to repossess a national residence where health problems persist. With that in mind, we would like to reiterate our assertion that a holistic approach to mortgage execution when it comes to measures such as this is ultimately detrimental to client choice and access to finance. funding.

“The initial moratorium ended in September and, although there has been no physical repossession since, this allowed actions to progress, where there was a legitimate cause, to a point where the repossession possession could take place subject to court decisions and when the broader health environment improves. Simply put, it has allowed the courts to make decisions about what to do next, depending on the specific circumstances of an individual case. By allowing the mechanism of the process to function in this way, it has alleviated to some extent the long-term liquidity problems for some lenders and also alleviated future deadlocks in the court system. “

Vic Jannels, CEO of ASTL, said: “ASTL represents the interests of many short term mortgage lenders in the UK who have a group loan portfolio of over £ 4.5bn and are responsible for annual loans of over £ 1bn. pound sterling. The bridging and development loans offered by our members are a crucial source of funding for several thousand SMEs and real estate developers, as well as for individuals and will be even more necessary after the end of the CBILS and BBLS. With this in mind, we believe that any extension of the moratorium will significantly slow down the recovery towards which all stakeholders are working. “

Jonathan Newman, Senior Partner at Brightstone Law and member of the ASTL Executive Committee, added: “As we discussed previously with HM Treasury, short-term lenders are disproportionately affected by the moratorium given the typical nature of their funding model and any return to a large-scale moratorium would significantly reduce the availability of funding. when it is most needed as we emerge. of the pandemic. We would be very happy to have the opportunity for a more in-depth discussion on this matter. “

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