Bank powers to veto debt deals curbed

The Coalition has claimed a major triumph in halting the mortgage arrears crisis by curbing the power of banks to block debt deals — despite the fact that only 115 have ever been vetoed by lenders.

Long-awaited measures to offer struggling mortgage holders a lifeline were met with a cautious welcome yesterday as well as claims they were too little and too late.

Courts will now be able to overturn a bank’s veto on a deal with borrowers while mortgage holders in more severe difficulties will be given greater access to an expanded mortgage-to-rent scheme.