Madam, – I believe that the crisis in mortgage arrears requires a serious political response. A statutory mortgage scheme is required at a low fixed rate with extended terms of 50-100 years or more.
Once a statutory mortgage is granted, the lands would be registered with the statutory mortgage as a charge. The charge on the lands would transfer on inheritance or survivorship or be redeemed on sale.
As regards the interests of the mortgage givers: they could proceed with repossession proceedings in the courts (as at present) or could opt to have their interests bought out with a statutory bond, at a percentage of the value of the mortgage prior to default, with an allowance for arrears to date.
The statutory bond (or interest upon it) could be used by mortgage givers to satisfy a range of statutory obligations (corporation tax, carbon tax etc), or redeemed over time.
The scheme would have to be financially and procedurally more attractive to mortgage givers than the current repossession mechanism in the courts; and also be a more attractive option to mortgage holders than quitting their homes and entering the rental market. I do not mention the social and psychological benefits of such a scheme here. – Yours, etc,