My Department publishes a wide range of housing statistics, including the number and value of local authority mortgages with a breakdown of those in arrears. The statistics are available on my Department’s website at: http://www.environ.ie/en/Publications/StatisticsandRegularPublications/HousingStatistics/FileDownLoad,15295,en.xls by clicking “Mortgage Data/Arrears in Local Authorities” under the Housing Loans contents. The data illustrate a gradual stabilisation and improvement in the local authority mortgage arrears situation in recent times.
The Mortgage Arrears Resolution Process (MARP) is being implemented across all local authorities. My Department issued revised guidelines to local authorities for dealing with mortgage arrears within the local authority sector in June 2014. Dealing with Mortgage Arrears – A Guide for Local Authorities is available on my Department’s website by clicking on the following link:
http://www.environ.ie/en/Publications/DevelopmentandHousing/Housing/FileDownLoad,30943,en.pdf.
Extending the term of the mortgage to a maximum of 35 years and a maximum borrower age of 70, depending on the type of loan, the remaining term and the circumstances of the individual borrower, as well as adding arrears and interest to the principal amount due at the interest rate applicable to the parent mortgage, are long term resolutions available to borrowers in mortgage arrears distress. In addition, a Mortgage to Rent scheme, specifically for local authority mortgage borrowers, is also available as part of the MARP arrangements.
The Local Authority Mortgage to Rent (LAMTR) scheme is demand led and actual expenditure across local authorities amounted to approximately €6.4m in 2014. An allocation of €8m was provided in 2015.
In cases of acute mortgage arrears distress, all homeowners also have the option of seeking to avail of the legal process now in place to deal with personal insolvency. The most important step any family in arrears can take is to engage early with the Arrears Support Unit of the local authority. Solutions are available and advice should be sought as early as possible.
