“Any help is better than no help at all, but this initiative just suspends the problem.
“It’s certainly not an alternative to mortgage payment protection insurance because it merely defers the interest whereas MPPI will make the actual mortgage repayment when the borrower can’t.
“After standing on the brink of repossession, it would be a foolhardy borrower who carries on disregarding their clear need for an appropriate form of mortgage protection. The very fact that these measures are necessary underlines this fact.
“If they already had MPPI in place when they lost their income their mortgage repayments would have been fully covered. As it stands, borrowers are still burdened with the knowledge that they will ultimately have to pay back the deferred interest in the future.
“This is a tough way to learn a lesson but I would hope that in the future homeowners will recognise that risk is real and take steps to protect themselves.”
