Government to discuss measures for struggling homeowners today

New measures aimed at dealing with homeowners struggling with mortgage debt are expected to be discussed by the Government this morning.

The Government asked accountant Declan Keane to come up with a range of measures to help mortgage holders struggling to pay their debts.

The Keane Report is expected to propose that mortgage holders who cannot pay their loans should be allowed to give the property back to the bank while remaining on as tenants.

It will suggest that banks who repossess homes should lease them to local authorities to help shorten the housing lists.

It will propose a shake-up of bankruptcy law, allowing people to get free of bankruptcy after three years instead of the current 20-year period.

The report also suggests allowing people in negative equity to refinance or park their loans if they want to move house.

It also proposes forcing banks to write off mortgage debt for some customers - a move opposed by the Government.

Ministers will discuss the report today and decide which parts, if any, should be implemented.