Loan modification would then start to be implemented, where appropriate, from quarter four of this year. This is welcome as the unsustainable mortgage issue is a key area of concern. Unsustainable mortgages I have mentioned unsustainable mortgages a lot – why are they so important? For a few reasons, I think. Let me start with consumer fairness.
If a homeowner has a massive gap between their mortgage payments, even on an interest only basis, and what they can actually afford currently or prospectively, after taking a realistic assessment of future income and employment, then I am concerned that the very limited or transitory relief provided by standard forbearance techniques could just be putting that person deeper in debt.