Tracker mortgages. July 17, 2012Posted by WorldbyStorm in Economy.
The Business Post has a snippet about a possible policy being considered by the Troika in relation to the banking sector. The idea is that the European Stability Mechanism will provide monies to the banking sector and institutions. This is as follows:
Crucial to this restructuring would be an agreement to remove loss-making tracker mortgages from the banks’ balance sheets – the third area to be looked at. This would immediately improve their market value as well as allowing them to lend more normally to consumers and business, seen as a key goal by both the troika and the government.
I don’t have a dog in this race, but I know people who do so I wonder how on earth that would work? Would that impact on those who hold the mortgages? If so wouldn’t that entail rewriting contracts? Is that feasible?