Measures to relieve mortgage holders in arrears ‘lacking detail’

Long-awaited relief measures for borrowers struggling with debt and mortgage holders in arrears have been criticised as belated, timid, and lacking in detail.

The Government plans are intended to give borrowers easier terms on which to agree debt deals with banks. An expanded mortgage-to-rent scheme will also give mortgage holders more options to walk away from unsustainable debt. Borrowers will also be offered further support services, including from the budgeting service Mabs.

Changes agreed by the Cabinet yesterday will in future allow courts overrule banks on debt deals. Insolvency deals will be reviewed by courts and bank objections overturned in favour of borrowers. This will allow greater numbers of people write down debt. Only 129 personal insolvency deals have been agreed with banks so far this year.