Banking on a workable solution

Inviting in new lenders prepared to take on exiting mortgages is the only way to solve arrears and negative equity problems, says Arthur Doohan

THERE is a simple way to eliminate most of the “negative equity” problem and a big chunk of the mortgage arrears problem, and it can be done at no cost to the taxpayer, the state or the banks.

Imagine for a moment that you owe someone €2,000. Imagine also, that they owe someone else €2,000 and that they have given that person an IOU for the amount. Lastly, you meet this third person and they sell you the IOU for, say, €1,000.