Banks to demand mothers sacrifice their jobs

Householders looking for a deal on their mortgage debt must make sacrifices, the Government has said, amid warnings that some of the restructuring rules are “draconian”.

Under Personal Insolvency Service guidelines to be announced next week, lenders can impose income and living standards limits on those in arrears.

These will include forcing them to give up health insurance, TV subscriptions, and even childcare if they enter negotiations on a debt settlement or mortgage write-down.