Mortgage body denies strategic default claim

The Independent Mortgage Advisers Federation has denied claims by financial adviser Karl Deeter that up to a quarter of mortgage holders in arrears are voluntarily allowing their mortgages to slip towards default.

IMAF spokesman Michael Dowling described Mr Deeter’s claims as an insult to all the families who are struggling to pay their mortgages. He said the banks have been pushing the same allegations as Mr Deeter in an attempt to water down the planned personal insolvency bill.

“There will always be a small number of opportunists that seek to avoid their responsibilities in all areas of life, but the banks have been using this misleading tale as a red herring in a desperate attempt to have the personal insolvency provisions watered down to ensure that the banks retain their dominant position and keep distressed mortgage holders under continuing pressure,” said Mr Dowling.