Families may be allowed to rent their repossessed homes

FAMILIES whose homes are repossessed may be allowed to stay in their properties in return for giving up ownership and renting it from the state under wide-ranging measures being considered to deal with the mortgage debt crisis.

The proposals emerged after Finance Minister Michael Noonan was accused of not acting with enough urgency as thousands more households slip into arrears.

Other options being looked at by a body of banking figures and civil servants set up by the Government include enabling people already in negative equity to trade up to a new home. This would be if they can sustain the overall debt after selling their old residence at a loss and carrying the previous mortgage “hangover” with them.