Government to outline mortgage arrears plan later today

Government to outline mortgage arrears plan later today

The Government is to announce new measures to tackle the mortgage arrears crisis later today.

A key part of the plan will see banks set quarterly targets to restructure the home loans of distressed borrowers.

Almost 12% of owner occupier mortgages are in arrears.

Politicians and the Central Bank are frustrated with progress despite years of negotiations. Only 50 home loans have been split so part of the loan is parked until the borrower’s situation improves.

The Government and Central Bank will announce steps to encourage banks to act more quickly. This is expected to see lenders forced to meet targets to restructure mortgages.

If they do not they will have to set aside more capital to deal with arrears, which is something banks will not want to do.

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