The purpose of the mortgage interest supplement scheme is to provide short term support to eligible people who are unable to meet their mortgage interest repayments. There are currently some 11,000 people in receipt of mortgage interest supplement for which the Government has provided almost €42 million in 2013. To ensure that those who are in mortgage difficulty engage with their lender under the Mortgage Arrears Resolution Process (MARP) and avail of its forbearance arrangements, from 18 June 2012 the mortgage interest supplement is not payable until applicants have agreed with their lender and complied with an alternative payment arrangement for a cumulative period of not less than 12 months. This measure is in line with the recommendations of both the Department’s “Review of the Mortgage Interest Supplement Scheme” published in July 2010 and the “Mortgage Arrears and Personal Debt Group” chaired by Mr Hugh Cooney published in November 2010. This process acknowledges that it is in the interest of both the lender and the borrower to address financial difficulties as speedily and effectively as circumstances allow. Persons who were already in receipt of mortgage interest supplement when the legislation was introduced were not affected by this change. However, any person leaving the mortgage interest supplement scheme and subsequently reapplying after the introduction of the legislation are subject to this change.
