Family has €150k mortgage debt written off by AIB

A family has had more than a third of their mortgage written off after falling into arrears with AIB.

Under the terms of the deal, €150,000 of a €400,000 loan has been wiped and allows the married couple with two young children to stay in their home.

The agreement, brokered by the Irish Mortgage Holders Organisation, is thought to be the biggest of its kind so far.

The deal also sees the bank parking a portion of the loan, on condition that the owners continue to pay capital and interest on around €200,000, according to RTÉ.

Bank sources confirmed to the national broadcaster that the deal had been agreed.

David Hall of the Irish Mortgage Holders Association, who helped broker the deal, said the agreement is groundbreaking.

"The AIB split allows you stay in your family home for the entire duration of your life," Mr Hall said.

"The previous one with other lenders required you to sell your property at the age of 65 or at the end of the (mortgage) term.

"This (latest deal) also means that your payments are fixed - if you happen to get a job (that is) more highly paid than you are at the moment, you keep your pay.

"It's not reviewed every three years as used to be the case with a split.

"But the biggest benefit is that, where appropriate, a write-off will take place."

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