How the plan might work
Published 16/09/2010 | 05:00
Say a homeowner has borrowed €300,000 but has lost their job and can no longer meet their mortgage repayments of €1,400 a month.
Their house was originally valued at €300,000, but is now worth only €160,000.
The homeowner would have €140,000 of the loan written off, but under strict conditions.
This would mean the monthly repayments would fall to €757.
If the house gains significantly in value or is sold, the lender would share some of the sale value.