A proposed State-backed mortgage solution that would see county councils pay a portion of a borrower’s repayments directly to the lender has been described as “manifestly unthought out”.

High-profile mortgage debt campaigner David Hall has shared a pot of almost €800,000 in pay and rent from his private ambulance firm over the past two years.

A centralised online database of "unnecessarily repossessed" homes could be operational by the end of the year, leaving potential buyers with a "moral choice" over whether to purchase them.

The rising level of long-term mortgage arrears was labelled a "time bomb" yesterday, while new figures from the Central Bank also signalled an increase in the rate of possible house repossessions.

People in mortgage arrears were yesterday warned that “sticking your head in the sand will not help”.

The latest monthly mortgage arrears figures show the six main banks are still only dealing with the “easy options” and do not indicate how many houses were either sold voluntarily or repossessed, according to the Irish Mortgage Holders’ Organisation (IMHO).

The Taoiseach has been accused of trying to absolve himself of rules on mortgage restructuring after he suggested banks should not use the very powers that his Government granted them.