FIRST MINISTER IN MORTGAGE PROTECTION PLEDGE

The First Minister, Alex Salmond has revealed that the Scottish Government is actively looking to strengthen the law covering mortgage repossession to ensure Scotland’s homeowners get the same protection offered under new rules for England and Wales.

Scottish Legal News reported yesterday that Scotland's borrowers would not be covered by new court protocols for England and Wales, under which lenders will have to prove they have done everything possible to avoid struggling mortgage holders losing their homes.

Mike Dailly, principal solicitor at the Govan Law Centre, said: "The Scottish Government need to act immediately to protect Scottish households.

"GLC's defended mortgage repossession casework - across Glasgow, East Renfrewshire and East Dunbartonshire - provides irrefutable evidence that the Scottish system has major deficiencies which place Scottish households at risk of repossession and homelessness during the credit crunch."

Speaking to The Herald, George Clark, partner at Morton Fraser Solicitors, agreed that Scottish borrowers were now worse off than those in England and Wales.

He said: "Scottish borrowers were in a better position until this government initiative down south, but not now because in Scotland it protection still depends on the borrower asking.

"Scottish lenders don't have to demonstrate they have done everything possible to avoid repossession, they just have to demonstrate the debt so at the end of the day it's up to the homeowner to act, probably through a court ...and if you are many thousands in arrears you wont be able to afford to pay for a lawyer."

First Minister Alex Salmond said measures would be put in place to make sure that Scotland is not in any way disadvantaged.

He said: "First, people should understand what the position in Scotland is at the moment ... and if we need to take further action in terms of court protection we will look at that and do it as well.

“We can't use the same process as England and Wales because we have a different legal system but we will look at every option."

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