Banks have 'no alternative' to writing off some mortgage debts

The co-founder of the New Beginnings group, Ross Maguire, has said there is "no alternative" to writing off debt for some homeowners.

It comes after it emerged that the Central Bank has given the country's main lenders until the end of next month to outline how they plan to deal with the growing problem of mortgage arrears.

Last week, Bank of Ireland wrote €152,000 off the mortgage of a Dublin nurse after she handed back the keys to her apartment.

Mr Maguire, the senior counsel and co-founder of New Beginnings, the mortgage advocacy group who helped in this case, has said the current policy of saving the bank's balance sheets at all costs is not working.