Struggling home owners could see themselves debt free in three months if they surrender their property.

The deal, which has been announced by the Irish Mortgage Holders Organisation in agreement with AIB and KBC will see those who accept the terms processed through an faster Personal Insolvency Arrangement which will also include any unsecured debt such as credit cards and car loans.

The term of the arrangement will be no longer than three months which is shorter than the current 5 or 6 years.

David Hall of the IMHO explains the significance of the deal: