MORTGAGE RELIEF

Evening Post, Volume CXIV, Issue 126, 24 November 1932, Page 12

MORTGAGE RELIEF

The Mortgagors and Tenants Further Relief Bill does not go so far as it was feared the Government might be tempted to go in extended interfere/ice with contracts. Protection is given to persons who have put themselves, outside the scope of the original "Act, But only when the mortgagors have lost protection by variation of .the instrument or when the new mortgage is in replacement of one to which the Act applied. We cannot. agree that even this is wise, though- we have no doubt it is intended, to save mortgagors from great . hardship. It was plainly stated in the Mortgagors and Tenants Relief Act that variation of the principal provisions of an original mortgage or execution of a new mortgage resulted in loss of protection. Possißly mortgagees, relying upon this, have agreed to changes which they would not otherwise have been induced to make. They have made concessions in order to put their contracts-out-side the Act. The new. Bill invalidates any such provision. ' - : This nyeans, simply stated, that a contract cannot be made with a full assurance, that it will not be subject to interference. So long as this applies investors will continue reluctant and the free flow of money which is essential for reduction of interest rates will be deferred. If Parliament does decide to make the

extension proposed in the Bill it should at least make it clear that any concession made by the mortgagee in consideration of freedom from the. Mortgagors Relief Act may be withdrawn. If the Legislature disallows ■. the provision favourable to the mortgagee it is. unjust that he should be held to the concession which he has made to secure freedom, i