New measures aimed at dealing with home-owners struggling with mortgage debt are expected to be discussed by the cabinet this morning.
The Keane report proposes a range of radical measures,
including allowing home-owners in trouble – to hand back their property to the banks – while remaining on as tenants.
The government asked accountant Declan Keane to come up
with a range of measures to help mortgage holders struggling to pay their debts.
The Keane report is expected to propose that mortgage holders
who can’t pay their loans – should be allowed to give the property back to the bank while remaining on as tenants.
It will suggest that banks who repossess homes should lease them
to local authorities to help shorten the housing lists.
It will propose a shake up of bankruptcy law, allowing people
to get free of bankruptcy after 3 years instead of the current 20 year period.
The report also suggests allowing people in negative equity to refinance or park their loans – if they want to move house.
And It also proposes forcing banks to write off mortgage debt for some customers – a move opposed by the government.
Ministers will discuss the report today and decide which bits – if any should be implemented.
