Committee says there must be cash write-offs on distressed mortgages

Banks need to write off the debt from distressed mortgages, according to the Chair of the Oireachtas Finance Committee.

John McGuinness says their advice is cash write-offs for non-performing loans.

Yesterday, Ulster Bank told the committee around 3,500 people were wrongfully moved off tracker mortgage rates by the bank, with 15 losing their home as a result.

Mr McGuinness says there needs to be a more compassionate approach from the banks when it comes to mortgages in distress.

He said: "They need to write off the debt. The message from the European Union was that they were recommending cash write-offs for people that are in distressed loans and non-performing loans.

"The same methodology needs to be applied here."