Lenders need to be more flexible
It is in all our interest to explore more workable solutions until markets recover, writes James Fitzsimons
Published 20/02/2011 | 05:00
In spite of all the time that has passed and all the expert advice, we still don't have the right solution for dealing with repayment problems brought about by the economic downturn. If we didn't have to bail out the banks, the problem wouldn't be as bad. In fact, most borrowers would then expect less help.
Nobody can understand why the Government should expect the taxpayer, who has enough financial worries of his own, to pay for the mistakes of those who created the problem. The answer, we are told, is that we need a functioning banking system. We might understand it better if those who have the least were not being asked to support those who have most.
As the line goes, if you fail to make the repayments you could lose your home. This is frightening to so many people. The fact is that most people who are experiencing mortgage arrears, or payments problems, have been put in this situation through no fault of their own. The mighty have fallen too, but they may have been able to pass the problem to someone else.