How the schemes would work
Published 13/10/2011 | 05:00
•Charity buys your house
ONE of the plans involves struggling homeowners who risk eviction having the ownership of their home taken over by a housing charity such as Respond or Cluid.
A family getting this deal would be able to remain in the house and will pay rent to the housing charity.
Funding for some of the purchase price would be provided to the charity by the Department of Environment. The monthly rent would be based on ability to pay.
•Renting from the lender
Another mortgage-to-rent scheme would see mortgage lenders taking possession of the homes of distressed borrowers. Lenders that sign up for this deal would then lease the property to a local authority.
The county council would rent back the house to the former homeowner, with a the rent based on means.
•Non-court debt settlement
The Keane report calls for the fast-tracking of a new system, outside the courts, to allow those who are over-burdened with debts to have some of their bills written off. This would be needed for those forced to surrender their homes, or who had their homes repossessed, to be able to have some of the money they still owed on their mortgage dealt with.
The report also said lenders should consider setting aside a portion of the capital amount owed on a mortgage for a limited period.
There are also proposals for negative equity mortgages for those who want to trade down, which would allow people to take the balance they owe on their original home on to the mortgage of the new smaller home.