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Editorial: A wasted chance on home loans

The State will not rescue homeowners who cannot pay their mortgages in a move which adds insult to injury. Taxpayers were forced to bail out the banks when they got into financial difficulties, but there will be no such help for ordinary people who are trying to keep their heads above water.

Instead, an expert group has recommended that people who cannot pay their mortgages should hand back their homes and apply for social housing.

How does this make sense? People lose their homes, and the State has to pick up the cost of social housing. Meanwhile, the banks who lent out the money in the first place are left sitting pretty.

The interim recommendations from the expert group did not contain any proposals on forcing banks to write off mortgage debt, which would have been of major interest.

It's a wasted opportunity to put forward new ideas.


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