Struggling mortgage holders could get lifeline

IRISH banks could come under pressure to be more forgiving with mortgage holders in difficulty if a bid by a US billionaire for EBS is successful.

Analysts said a proposal from investor, Wilbur Ross, to allow some mortgage holders at EBS to reduce their debts could result in other Irish banks following.

The proposal would involve reducing the principal of a mortgage so that monthly repayments become more manageable for over-indebted borrowers.