AIB may seek part ownership of homes for debt forgiveness

ANY mortgage debt forgiveness scheme implemented by AIB could involve the bank taking a share in the ownership of the houses of those in arrears, it emerged yesterday.

AIB executive chairman David Hodgkinson said default is a “painful” thing to go through and it shouldn’t be talked about like it is an easy option. The bank’s chairman said that it is unlikely that it would write-off some mortgage debt and leave the homeowner with a 100% stake in their house.

AIB is considering “all options” for mortgage customers who can’t repay their loans. It said it is “actively discussing” long- term, industry-wide solutions with the Central Bank. The bank would not say what these solutions are but it is understood one of them would be some form of debt forgiveness for homeowners who can’t pay their mortgage.