The Irish Banking Federation has announced that the ten largest mortgage lenders in the country are to give more time to homeowners who are in difficulty with their mortgage repayments. For six months from the time they first default homeowners will be immune from legal action by the lenders, with the period stretched to 12 months for borrowers from AIB and Bank of Ireland. Under the new measures the six-month period will increase to 12 months provided the borrower enters into dialogue with the lender.

According to the IBF only 70 houses have been repossessed to date, and 49 of these were either handed over voluntarily or abandoned. Sub-prime lenders have been more active in pursing defaulters and have not bought into the new amnesty period.

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