Bring it on.
Sez controversial Financial advisor Brendan Burgess:
Here we blame the bank and not the borrower. Banks have to comply with a complicated and bureaucratic Mortgage Arrears Resolution Process – proposed incidentally by an expert group of which I was a member. We place all the responsibility for solving mortgage arrears on the lender. We absolve the borrower of all responsibility saying that they are in arrears “due to no fault of their own”. We throw our hands up in horror at the very mention of the possibility of repossession.
The result? While most people have continued to pay their mortgage, a minority have exploited the situation. When these people realised that there was no effective sanction for not paying their mortgage, they tried to get away without paying. Some 30,000 people have now built up over two years of arrears. Some of these have done their best to pay what they can, but many of them have taken advantage of the lack of any effective sanction and made little effort to pay.
Well-meaning debt campaigners have done these borrowers no favours whatsoever as they have just encouraged the borrowers to avoid reality and to delay facing up to their problems. They have given these borrowers false hopes of debt write-downs. If these borrowers had addressed the problems early on, many could have got back on track. But many have now left it too late and will lose their homes.