Mortgage initiative "not in interest of borrowers"

Mortgage initiative "not in interest of borrowers"

A new government scheme offering free financial advice to struggling mortgage holders is flawed, according to New Beginning.

The group of legal experts who offer free counsel to help people avoid losing their homes has claimed the initiative is not in the borrower’s best interests because it says appointed accountants can only give advice on bankers’ proposals on arrears.

Barrister Ross Maguire said: “The independent accountant is prevented from taking part in the negotiation leading up to the proposal and the distressed customer cannot avail of the advice until after the bank has issued their debt resolution proposal. This is not in the borrower’s interest.”

Social Protection minister Joan Burton, who announced the scheme, said the accountant’s expertise would still be beneficial.

“Professional accountants are quite experienced and trained to go through the issues in detail to help people reach what is their decision.”

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