Mortgage holders tied down by red tape
It would appear that most attempts to broker deals between distressed mortgage holders and their lenders are coming to naught. The latest setback to such settlements is the revelation that the 'mortgage to rent' scheme, which has been proposed for 2,337 families, has led to just 38 transactions being sanctioned so far.
This scheme, in which distressed borrowers who could not pay mortgages would rent their own homes, is floundering even though it should be attractive to all those involved. It would mean borrowers paying something and the lenders getting something in return. Happiest of all would be the Government, which would not be left with the responsibility of rehousing thousands of families who will otherwise lose their homes.
But so far Ireland's two biggest banks, Bank of Ireland and AIB, have only completed once such transaction each.