Cabinet pledge to troika on retaking of homes

The legal loophole that has prevented banks from repossessing homes for two years will be removed by March, the Government has promised the troika.

Currently 65,700 mortgages — one in 12 — are in arrears of over six months, with people owing more than €1.3bn on mortgages of €13.3bn.

However, despite the mounting mortgage arrears, repossession orders were given on only 97 houses in the three months to June, after the courts found legislation applied only to mortgages granted after 2009.