100 debt mortgages written off in new deal with AIB including €195,000 for one family

New figures from the Irish Mortgage Holders Organisation show that state owned AIB has agreed 100 deals with mortgages holders who are in distress. The deal includes a variety of terms and agreements with one family having been agreed a €195,000 write down on borrowing of €478,000 and have also been allowed to remain in their home and service a mortgage of €200,000.The balance of their borrowings will be warehoused.

Write-downs between mortgage holders and banks are becoming more common.

According to the Irish Mortgage Holders Association, it is now dealing with an estimate 2000 AIB clients or clients of its subsidiary EBS. It is also handling 360 clients of KBC bank. However AIB did not issue a comment of the figures released today, it has previously announced details of a split mortgage product which involves an automatic write down of some mortgage debt.