Dáil Éireann Debate, Thursday - 5 February 2015
20. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection if she will review cases whereby homeowners were refused mortgage relief on the basis that the mortgage was unsustainable or that a lending institution was unlikely to facilitate a restructuring of repayments in cases where this has subsequently been proven to be incorrect; and if she will make a statement on the matter. [4974/15]
View answerThe Government’s strategy to assist those in mortgage difficulty is built around the following measures, as recommended in the 2011 Interdepartmental Mortgage Arrears Working Group (Keane Group), in four main distinct areas:
- Lenders providing sustainable and durable resolution options to their borrower;
- A social housing response sponsored by local authorities;
- Comprehensive advice to borrowers; and
- Personal Insolvency Reform.
In the context of the overall strategy, the continued payment of mortgage interest supplement, the purpose of which was to provide short-term support to meet mortgage interest repayments, does little to assist recipients in improving the long term difficulty in addressing their mortgage problem. Discontinuation of entitlement to the mortgage interest supplement scheme came into effect for all new applicants from 1 January 2014. Customers availing of this support prior to 1st January 2014 have been able to retain entitlement to the scheme up to 1st January 2018. There are currently approximately 5,880 recipients.
It is expected that during the four year period, the existing customers will no longer require this support through sustainable solutions being put in place with their lenders, securing employment or exit strategies sponsored by the Department of the Environment, Community and Local Government. I am satisfied that the most appropriate way in which customers experiencing mortgage difficulties can be supported is through engagement with their lender.
