New Government scheme to keep debtors in their homes

Thousands of struggling mortgage holders will be offered an option to walk away from mounting debts but still live in their homes under a scheme being finalised by the Government.

The new mortgage-to-rent scheme will allow home-owners write off their debt — if they give their homes to the bank — but still live under their roofs as social housing tenants.

Private companies or investors would then buy properties off the banks and local authorities would act as management companies and lease the properties to the former owners.