One in 10 borrowers will get split home loan deal

Only one in 10 of distressed mortgage holders will qualify for the split mortgage solution that includes a significant debt write-down, head of the Irish Mortgage Holders Organisation (IMHO), David Hall, has said.

Eligibility for these split mortgages, which are only available in certain banks, is based on strict affordability criteria. An applicant must be able to cover the payments of 80% of the current market value of the property and have sufficient funds left over to meet the acceptable living standards set out in the new personal insolvency legislation, he said.

Mr Hall was speaking after it emerged that the IMHO had negotiated the restructuring of an AIB mortgage for a Cork family that included a €195,000 debt write-down and the retention of the family home.