Letter: Mortgage refund idea is no solution

Mrs Jane Dicks
Tuesday 04 August 1992 18:02 EDT
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Sir: Oh good, another idea from an altruistic mortgage lender to help 'us' out of the housing slump.

Can I point out two simple defects in the Abbey National's new scheme? First, it will cause prices to fall still further, because prospective purchasers will bargain over the availability of tax relief. Second, it will remove all incentive for sellers to make mortgage payments, if the whole amount outstanding is to be set against the sale price.

If the mortgage lenders want to help the victims of the slump instead of their own figures, they ought to work on the mortgage rescue schemes they promised as a quid pro quo for getting benefit paid direct to them by the Department of Social Security.

Yours sincerely,

JANE DICKS

Chesham,

Buckinghamshire

4 August

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