FLA will not force lenders to sign up to support scheme

The Finance and Leasing Association says it will not force secured loan lenders to sign up to the government’s Homeowner Mortgage Support Scheme.

The Treasury announced last week that it was extending the scheme to cover those at risk of repossession because of additional loans secured on their home.

The inclusion means that secured lenders may have to mirror what first-charge mortgage lenders have signed up to and defer payments and repossession for up to two years.

But the FLA, which has formed a repossession code for secured loan lenders says it will not be advising its members to sign up to the scheme.

A spokeswoman says: “We are letting our members make up their own minds as to whether they want to take part in the scheme. It is voluntary and lenders will need to make a business decision as to whether they want to take part.”