Friday 20 October 2017

How the plan might work

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.

Irish Independent

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