Labour European election candidate, Lorraine Higgins, has said Irish banks need to negotiate better terms and conditions for Irish homeowners, following news that only four mortgage debt deals have been secured through the personal insolvency service.

"Statistics published paint a less-than-perfect picture of the outcomes being reached within the personal insolvency service, particularly in cases involving mortgage debt.

"Despite there being 320 applications for mortgage agreements, just four deals were reached. This points to systematic failure on the side of the banks to genuinely address the mortgage issue.

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"Advocates for distressed borrowers have indicated that banks are vetoing deals and it is also clear that there is a policy of sustaining loans for the lifetime of the borrower, ultimately keeping them as paying customers and ensuring a higher loan return over the period.

"There also remains an acute lack of knowledge of the personal insolvency services amongst distressed homeowners as was pointed to by New Beginnings, Phoenix Project and the Free Legal Advice Centre (FLAC) in yesterday's finance committee.

"While it can be very effective tool to use with the banks in negotiations, the State needs to provide more advice on the service – at no cost – to homeowners so they can make a conscientious decision about their affairs based on best practice."

(CD)