Possessions register

Introduction

The possessions register (the register) is a CML initiative and was established in conjunction with two major credit reference agencies namely, Experian and Equifax. The register lists properties taken into possession on both a voluntary and involuntary basis by those lenders participating in the scheme, with the dual aim of preventing fraud, over commitment and loss.

Background information

A proportion of possessions are on a voluntary basis, with borrowers either simply leaving the property or surrendering the keys after consultation with their lender. In these cases, a county court judgment is not registered against the property or the borrower; a similar situation arises when a possession order is granted without a money judgement.

This means that where a borrower had voluntarily surrendered a property and then approached a different lender for a mortgage on another property, when the subsequent lender undertakes a credit reference search, it would be unaware of the default on the previous mortgage.  

Borrowers who seek a further mortgage without disclosing their previous liability may be acting fraudulently.

The register will alert the subsequent lender to whether a borrower had defaulted on a mortgage in the past which is relevant information, although not conclusive, when deciding whether to grant a mortgage to the borrower.

Lenders should review each case on its individual merits, taking into account the borrower’s circumstances at the time of the application and his ability to meet mortgage repayments in the future. Lenders should not operate a blanket ban prohibiting the provision of mortgage finance to persons named on the register, although it is up to each lender to decide its own lending policies.