# "Borrowers who lost their homes should be considered for a new mortgage"



## Brendan Burgess (23 Mar 2017)

From [broken link removed]Principles for Lenders when Tracker Mortgage Related Issues Identified for Redress (Principles for Redress)

1.4 Offer of a New Mortgage
1.4.1 In circumstances where a customer has lost ownership of their mortgaged property and are
likely not to have done so, or to have qualified for an alternative repayment arrangement, but
for the relevant issue, the lender is to consider if it is appropriate to offer the customer a
mortgage along with any associated compensation or benefits subject to suitability and or
other requirements in place. If it is considered appropriate then such an offer is to be made.
1.4.2 Having regard to the sensitivity and complexity of such circumstances (e.g. writing off
shortfall amounts owed by customers, the uplift in property prices, the Central Bank’s
housing loan requirements
1
), the lender is to engage closely with the Central Bank on the
development of such proposals.


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## Seagull (28 Mar 2017)

In an ideal world, the redress where property prices have increased should be that the bank is forced to make an offer to the client of either

The bank purchases the same house, or a very similar one in close proximity.
Or 

If the customer has been forced to move, and wants to stay in the new location, the bank should pay the current value of the lost house towards the purchase of a house in the preferred location.
On top of that, the bank should then

give a mortgage on the conditions that the original one should have been on, with the same remaining balance
Refund any difference between rents paid, and the mortgage payment
Pay a heft compensation amount


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