MORTGAGE ARREARS

Home owners who have already negotiated payment breaks on their mortgages may also be able to avoid paying interest on up to a third of their loans over several years under new Government proposals due to be published this week.

The Sunday Business Post says one of the main recommendations of a report into banks’ arrangements for mortgage arrears and personal debt is a suspension of part of the interest on their loans.

If the proposals in the report are adopted, struggling mortgage holders could have up to a third of their monthly repayments frozen for five years.