Couples who divorce wil be at less risk of having to sell their home under reforms to the National Mortgage Guarantee scheme.

At the moment NHG-covered mortgages are recalculated when one partner moves out based on the current value of the property. Recent increases in house prices mean many divorcees on a single income earn too little to cover the new loan, forcing them to sell.

A spokesman said: ‘That means you end up with two partners out on the street when it is better if one of the two can continue to live in the house, especially if there are children involved.’

The new rules will allow one of the partners to buy out the other person’s share and stay in the house as long as they show they can afford with the mortgage repayments.

The NHG changed the rules after running a pilot project that allowed 1,000 people to stay in their homes who would otherwise have been forced to move out.

The NHG protects mortgages on houses worth up to €310,000 by offering financial support or covering the cost of a forced sale if one of the partners dies or is unable to work, or the owners separate.