Hello Mr. Burgess,
That point about 726 people paying nothing has to be attended to immediately imho. By all means, if there are legitmate reasons why someone cannot pay anything for a relatively short period of time then you try to help them, but medium to long term the property needs to be sold and everyone needs to move on, imho.
As for the 267 paying sub 50%, is that sub 50% of the loan interest, or sub 50% of the overall capital & interest repayment ? ... if it's sub 50% of the interest, then even when you make an allowance for the high SVR being charged, there's a fundamental problem and again, if it's not a short term issue, the properties need to be sold and everyone needs to move on imho. If it's sub 50% of the capital & interest repayment, then perhaps a restructure is appropriate for a period of time.
I'm not trying to be heartless here, but these situations cannot continue indefinitely. Unless the bank is actually put through write offs on an ongoing basis, then the debt the people owe is increasing, while the bank continues to have a significant number of non-performing loans on it's books. Bad for all concerned !
Ultimately, I find myself wondering is there a firm action plan in place and is it being progressed, to deal with these circa 1,000 loans and if not, then why not ?