AN INTERIM report dealing with mortgage holders who are in difficulty is expected to be presented to Minister for Finance Brian Lenihan this week.

The report, from a group headed by insolvency expert Hugh Cooney, may recommend that lenders offer troubled mortgage holders the chance to extend the length of their mortgage, let them pay interest only for a time or allow them a payments break to give them time to get their finances back on track.

It is thought likely it will propose that all mortgage lenders, including subprime companies, follow standard rules when dealing with people struggling to meet repayments.

However, it is considered unlikely that it will propose that persons in difficulties be forgiven a portion of their debt.

It is not clear if the document will be published. Taoiseach Brian Cowen has said the Government will be supportive of whatever recommendations emerge.

“We are mindful of the fact that there are very many hard-pressed families out there who are meeting their commitments, despite the difficulties. One has to ensure that whatever emerges deals in a targeted way with those who are in payment difficulty, whilst ensuring that those who are conscientiously ensuring that they meet their commitments presently are not felt at a disadvantage for doing so.”

The expert group on Mortgage Arrears and Personal Debt is expected to deal at a later date with general personal debt.

Mr Lenihan says he is confident the group will examine all realistic options available to assist mortgage holders and those who are in debt, without raising concerns in the international markets about the quality of the mortgage loan books held by the financial institutions.

The International Monetary Fund, Free Legal Advice Centres and the Law Reform Commission have all spoken of the need for policies to help homeowners struggling with mortgage arrears.