Mortgage write-offs - Much more to be done

With 79,500 mortgage holders still more than 90 days in arrears, AIB’s dealings with 100 homeowners may look like small beer but mark significant progress nonetheless.

At least it demonstrates to thousands of people that some form of debt write-off is possible.

Regrettably, not all banks are prepared to go down the same road on which a Cork family who borrowed €487,000 will now see their debts written off by €195,000 and will remain in their home.

Given the sheer scale of the crisis, the call for greater consistency in how banks deal with homeowners makes a lot of sense. Unless Bank of Ireland, for example, is willing to change direction and support debt forgiveness of some kind, the outlook will be bleak for thousands trapped in Ireland’s mortgage quagmire.