Cheltenham & Gloucester Building Society v Norgan

rdf:langString Cheltenham & Gloucester Building Society v Norgan

rdf:langString Cheltenham & Gloucester Building Society v Norgan

rdf:langString [1995] EWCA Civ 11

rdf:langString [1996] 1 WLR 343

rdf:langString Evans LJ

rdf:langString Sir John May LJ

rdf:langString Waite LJ

rdf:langString Mortgage

rdf:langString Cheltenham & Gloucester Building Society v Norgan [1996] 1 WLR 343 is an English land law case, concerning mortgage arrears. Under section 36 Administration of Justice Act 1970 (as amended), the lender should, for an owner-occupier mortgage borrower facing temporary income difficulties set a clearly sustainable payment plan based on good evidence assessed such as, if proportionate to its own expected interests, to pay off the arrears over all of the remaining term of the mortgage rather than necessarily the shortest payment plan possible. This will spare the high cost and inconvenience to the borrower of the lender's repeated applications to the court for a Final Possession Order if the arrears continue to accumulate on facts where the court is merely likely spread out further the repayment of the arrears. The panel of judges unanimously overturned the courts below and rebuked the parties' repeated applications which resulted in a series of court hearings and orders — each imposing more affordable payment plans still within the term of the mortgage. It instead issued an eightfold list of criteria for future court cases to look to in assessing what order they will make in relation to arrears, taking into account expert evidence including factors cited by the Council of Mortgage Lenders; the aim being to avoid either side engaging in frequent applications ("vexatious litigation") or other abuse of judicial process.

rdf:langString On appeal from an appeal of the Administrative Court: HHJ O'Malley sitting in the Shaftesbury County Court