Advice centres welcome extension of mortgage-arrears period

The Free Legal Advice Centre is welcoming the decision by the country's 10 largest lenders to extend the length of time they will allow to pass before pursing legal action over mortgage arrears.

The Irish Banking Federation says its members will extend the period of grace on a six-monthly basis to assist mortgage holders who are facing repayment difficulties.

Homeowners are already provided with a six-month timeframe before lenders initiate legal action under the Government's Code of Conduct on Mortgage Arrears.

Noeline Blackwell - the Director General of FLAC - said today's move would provide a further reprieve for hard-pressed homeowners, though it was not a complete solution.

"We're glad that the banks are doing it (but) we have reservations…It by no means constitutes enough. It is not a rescue package for borrowers (and) does not solve the mortgage indebtedness crisis."