The Prime Minister Gordon Brown today hit out at a high court ruling that a lender was legally correct to sell the property of a buy-to-let borrower who was in arrears without a repossession order.

PropertyWire.com – 11 November 2008

Yesterday’s landmark high court ruling means that property owners could see their homes sold from under them by mortgage lenders after just two missed repayments.

The ruling, based on a 1925 law, flies in the face of new guidance that is being drawn up by the Civil Justice Council on repossessions and at his monthly news conference Mr Brown condemned the decision.

‘This is not an acceptable situation. We have said very clearly there were rules for banks to go through,’ Mr Brown said.

He said the government was calling on lenders to offer borrowers the option of extending the length of their mortgages if they are in trouble and allow them to switch to interest-only mortgages. Full Article