Mortgage debt write-off unlikely

HOUSEOWNERS should not expect any debt forgiveness from banks even though Bank of Scotland (Ireland) has moved slightly in that direction.

BoSI, which operated the Halifax banks in Ireland, said yesterday that it has begun to restructure debts owed by buy-to-let borrowers in Ireland in exceptional circumstances.

It is understood that for such borrowers who cannot repay their loans the bank is writing off part of the capital owed. Reports also said that in a small number of cases capital has been cut for owner occupiers if a forced sale left an outstanding loan.