Homeowners in arrears to get extra protection

BANKS and building societies will find it harder to repossess homes under proposals to protect mortgage holders in arrears.

The existing rule introduced earlier this year requiring a 12-month wait before starting repossession proceedings still applies.

But under a proposed new code, the clock would be reset if the borrower agrees a revised repayment plan and would only start ticking if they default on that plan and fail to agree a new one.