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Home loan help could be on way

THE Government is considering a new agency to enforce debt restructuring agreements between banks and struggling mortgage holders.

The news comes as the Central Bank published figures that showed around 55,000 home loans (7pc) were in arrears at the end of June.

This compares to 6.3pc three months ago, and 5.7pc at the end of 2010. The number of people in mortgage arrears is rising by 20,000 per year.

The agency under consideration may be granted legal powers to force banks to change some terms of mortgage agreements. The Cabinet is awaiting a committee report at the end of next month before coming to a decision.