Dáil Éireann Debate, Tuesday - 25 September 2018
465. Deputy Robert Troy asked the Minister for Employment Affairs and Social Protection the measures in place to assist mortgage holders who find themselves in short-term difficulty; if there is a similar scheme of mortgage interest relief that mortgage holders can avail of for a period of time; and if she will make a statement on the matter. [38751/18]
View answerThe original purpose of the mortgage interest supplement scheme (MIS) was to provide short-term support to eligible people who were unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence due to temporary unemployment of loss of earnings. The scheme was closed to new entrants from 1 January 2014.
It had been intended to close the scheme from 31 December 2017. However, due to the exceptional difficulties and pressures experienced in the housing sector, arrangements have been put in place to continue support to existing MIS beneficiaries by providing alternative financial support under the supplementary welfare allowance scheme. All cases are subject to ongoing review to ensure there is a requirement to continue this financial support together with on going engagement with their lenders to explore sustainable solutions.
As the Deputy may be aware that the Money Advice and Budgeting Service (MABS), under the aegis of the Citizens Information Board, provides assistance to people, in particular those on low incomes or living on social welfare payments, who are over-indebted and need help and advice with debt problems. As part of its free services, MABS provides help and advice to those in mortgage arrears.
The role of MABS was expanded in 2015 with the establishment of a Dedicated Mortgage Arrears MABS service (DMA MABS) across the MABS network, to help people specifically with home mortgage arrears. There are 32 specialist DMA advisors working across 27 locations countrywide, assisting borrowers to assess the options available to them and, where required, negotiating with lenders on their behalf. To date, the DMA service has helped approximately 5,746 such borrowers.
Additionally, MABS provides a national network of court mentors who attend each listed repossession Court hearing countrywide. The mentors provide support to distressed borrowers who are facing the loss of their home and signpost them to the appropriate services. To date, over 1,400 borrowers have been referred onward to MABS advisors through the court mentor service.
In 2016, a further initiative was announced by Government, known as Abhaile. This scheme further extends the free services already available to borrowers through the DMA MABS service and the court mentor service. This voucher based scheme, for which MABS is the gateway, provides access for people, who are insolvent and in home mortgage arrears, to access independent expert financial and/or legal advice and assistance, free of charge. To date, approximately 13,748 vouchers for services have been issued, in respect of c. 7,345 principle private residences.
The most appropriate way in which customers experiencing mortgage difficulties can be supported is through ongoing engagement with their lender to explore sustainable solutions
I trust this clarifies the matter for the Deputy.
