This idea is stupid, plain and simple, it is stacked in favour of the lenders, that is why 7 of them have already signed up to it; a classic ‘delay and pray’ manoeuvre and the only way it would make any sense to use would be if interest were discounted or waived on the warehoused portion, otherwise it makes better sense to just go bang and have a personal insolvency agreement under the new legislation.
Why go bang instead? Well, you get to start again with no claim on future income the way this one does which could create potential losses 30 years away, if you have a home you simply can’t bear to leave then that might sway it, but for your average borrower in trouble this is a ‘solution’ but only for one side of the debt party.