Mortgagors and Tenants Relief.

Press, Volume LXVIII, Issue 20498, 17 March 1932, Page 10

Mortgagors and Tenants Relief.

The telegraphed summaries of the Mortgagors and Tenants Belief Bill show that it is mpre remarkable for the liberal extension of. principles applied in existing legislation than for the adoption of new ones. The Government stands, to its belief, which is strongly grounded, that statutory reduction of mortgage interest would work badly, because it would be too inflexible to meet widely differing needs; but the Bill embraces tenants (except short-term tenants) as well as mortgagors, and enables relief to be sought, more easily and granted more variously and over a wider range of obligations. A mortgagor may approach the Court, though under no pressure from his mortgagee, and lessors, it appears, fire given the same right. Relief may be granted by the remission or reduction of interest or rent, or by extending the mortgage period. No power is given to reduce mortgage principal, though it is of course plain enough that the effect of the Bill, like the antended Mortgagors Relief Act, must be to increase the. pressure on mortgagees to take this step, as well as others, to meet their mortgagors; but hardships suffered under tlrc application of personal covenants, affecting mortgages on land, have led the Government to provide for review and relief. The nature and effect of these provisions will hav» to be closely examined; but it will no longer suffice as a sole objection to them that borrowing on landed security will become more difficult. Otherwise, the most interesting disclosure due to the introduction of the Bill was drawn from the Prime Minister by Opposition complaints that the, Government was not going for reductions and sacrifices all round and equally. The legislation which, according to Mr Forbes's strong hint, is being prepared is likely to be a great deal more controversial than th<j present Bill.