Bankers have been given targets of addressing 50% of overdue mortgages by the end of the year.

AIB's Chief Executive David Duffy has revealed that his bank has written off €38 million so far this year from residential mortgages, compared to a €55 million total last year. Duffy has also stated that in many cases his bank has no option but to send legal letters to mortgage customers, and believes a quarter of customers in arrears actually have enough disposable income to manage repayments.

Duffy told the Oireachtas Committee that AIB made 8,600 offers to customers in mortgage distress in the second quarter of this year but 40% of those letters were threats to engage in legal action, directed at customers over three years in arrears.

The Government are looking to have more cases dealt with through the likes of split mortgages and personal insolvency arrangements, although some observers have predicted an increase in repossessions.

Sinn Fein’s Pearse Doherty talked to Newstalk Breakfast about Duffy’s contributions yesterday, saying “74% of the offers given meant people leaving their homes” which is not what either Fine Gael or the opposition had envisioned as a sustainable strategy for dealing with the crisis:

The Committee will continue quizzing bank officials about their plans for creating long-term solutions for residential customers with mortgages in arrears. Bank of Ireland’s Richie Boucher is appearing in front of the Committee today, with the chief executives of Ulster Bank and Permanent TSB also due to appear over the course of the week.

Do you think repossessions are a necessary part of the banks’ efforts to confront the mortgage arrears crisis? Are both banks and customers simply facing challenges that are extremely difficult to overcome through mutually beneficial or acceptable compromise? Vote in our poll and leave your comments below.