High Court Dismisses Borrowers Appeals in Santander UK plc v Harrison & Harrison

    February 2013
    On 7 February 2013, Mr Justice Males (sitting as a judge in the High Court) handed down judgment following the borrowers’ application for permission to appeal in Santander UK plc v Harrison & Harrison [2013] EWHC 199 (QB). The borrowers’ appeal relied on two technical points under the Consumer Credit Act 1974 (“CCA 1974”): (a) whether the capitalisation of arrears due under a mortgage secured on residential property was regulated by the CCA 1974 meaning the debt was “irrecoverable and the mortgage security worthless” (“Capitalisation Issue”) and (b) following a securitisation agreement with Holmes Trustees Limited (i) Santander UK plc (“Santander”) had no right to bring the claim and (ii) there was an unfair relationship within Section 140A of the CCA 1974 because Santander failed to comply with the borrowers’ reasonable requests for further time to pay (“Securitisation Issue”). Lenders will be pleased to know that in a sensible and pragmatic judgment, the appeal was refused.