AIB and IMHO negotiate mortgage write downs for Irish borrowers

Allied Irish Bank (AIB) has partially written off the debt of nearly 100 borrowers in a surge of mortgage write downs.

The Irish Mortgage Holders’ Organisation (IMHO) said it has negotiated deals to restructure and write down debt on the behalf of 97 AIB customers.

David Hall, a founder of the IMHO, said: "There’s been a monumental upsurge in activity.

"After six years of banks doing nothing, we have banks now doing a combination of good and bad things, from repossessions to restructuring deals."

Hall said the organisation is currently working with over 2,000 AIB clients and 360 KBC bank customers to negotiate deals on their mortgages.

The AIB clients include those who took out mortgages with the lender’s subsidiary EBS building society.

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AIB declined to comment on the IMHO’s figures or its policy towards mortgage write downs.

In February, AIB released a new split-mortgage deal under which eligible customers have their loan divided into three parts.

The first part is based on the current market value of the customer’s home and is expected to be repaid.

The second is stored, interest-free for repayment at a later date and the third part is written off.

The latest figures from the Irish central bank suggest 96,474 loans, or 12.6% of the mortgage market, were in arrears of more than 90 days in Q4 2013.

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