Introduction
To begin with, it should be emphasized that Hayley’s case with mortgage problems can not be regarded as a serious or complex case that is difficult to solve. Naturally, the bank wishes to get back the sum, which Hayley owes, nevertheless, Hayley herself has the opportunity not to lose her real estate property and has the right to legal assistance and help.
Discussion
The mortgage system of Australia is rather specific in comparison with the western mortgage and loan practices. Thus, brokers, which perform mortgage operations do not usually impose fees for their services, as they generally get the incomes from lenders for introducing loans. The commission, which is paid for mortgage services is tiny (up to 0.66% of the total loan amount). In the light of this fact, it should be stated that the person, who resorts to mortgage services is not attached to the broker by the terms of the however, the only attachment is towards the total sum of the loan. IBISWorld’s (2008) review states the following fact: “mortgage brokers are paid commissions by the lenders this does not alter the final rate or fees paid by the customer as it may in other countries. Mortgage brokers cannot charge the customer a higher or lower rate and in return obtain a higher or lower commission”
Taking these notions into consideration, it should be stated that Hayley is not strictly attached to the bank by responsibilities on the terms of the period. The strongest attachment is based on the total sum, which should be paid within the setup period, nevertheless, there is nothing stated in the mortgage regulations on the matters of the regularity of payments.
Originally, it should be stated that the minimal loan, which citizens may get is £50,000, and the repayment period may vary from 5 to 30 years. It is another confirmation of the previously set notion. Consequently, Hayley just needs to discuss this issue with the bank, and insist on the postponement of the regular payments, with or without postponement of the total repayment. Another variant is to insist on increasing the total period of repayment, thus, the periodical repayments could be essentially decreased.
Another statement is based on the regulation, stating that the loan is generally based on the personal ‘gross’ pay, and should be calculated based on affordability. The total outgoings must not surpass 35% of the total growth monthly income. (Guest, 2009). Surely, this could be regarded as an additional option of overcoming the appeared challenges, nevertheless, if the minimum wages will help Hayley to pay off the loan, anyway the repayment period should be reconsidered.
Anyway, both sides wish to benefit: the bank wishes to get the money back, and Hayley needs to postpone the payment of the loan. The compromise may be found, and the main trump in Hayley’s hands is the possibility to reconsider the terms and insist on postponing the regular payments. Nevertheless, she would have to find a bail, who would guarantee her repayments. The next step is finding a job and renewing the regular payments to a bank or mortgage broker.
References
Guest, Ross S. “A Life Cycle Analysis of Housing Affordability Options for First Home Owner-Occupiers in Australia.” Economic Record 81.254 (2009): 237.
Suzuki, Tomoya. “Is the Lending Channel of Monetary Policy Dominant in Australia?.” Economic Record 80.249 (2008): 145.
IBISWorld. Mortgage Brokers in Australia. Industry Market Research Report. (2008).