Lenders must show respect
THE measures being introduced to protect people who fall into arrears with their mortgages make simple, common sense. Anything that helps ease the financial hardship of people burned by the recession is to be welcomed. At the same time, the proposals reduce the scope of a minority to exploit a climate of tolerance by neglecting to make repayments that they could well afford.
Under rules introduced last February, mortgage holders in trouble were granted a year-long moratorium on repossession. In future, any borrower who engages with the lender and sticks to a repayment agreement need have no fear of losing the family home.
The spirit of the Financial Regulator's proposals lies in mutual good will and respect. The banks will have to look at all the repayment options and settle on an arrangement that is feasible for the borrower. Borrowers must lay their cards on the table and stick to whatever deal is struck.