The government is being urged not to allow the green-lighting of "heartless" home repossessions.

The Irish Independent today has reported that the coalition will allow banks to push ahead with the repossession of homes and buy-to-let properties by closing a legal loophole.

New laws - on top of the personal insolvency legislation - will mean that banks will have a suite of options available to them, including split mortgages, interest only, or in limited circumstances, debt write-downs.

Last night An Taoiseach Enda Kenny told his Parliamentary Party that resolving the banking system and mortgage issue as the next big challenge facing the Government.

Calls for independent body to decide on foreclosure

Mr. Kenny told Fine Gael TDs that he would have a plan for dealing with the issue of distressed mortgages in a fortnight.

Sinn Féin says the government should not allow banks have the power to repossess homes and instead wants an independent agency to decide whether there should be a foreclosure.

The party's Finance spokesperson, Pearse Doherty has been speaking to reporters at Leinster House.