Denis Naughten
Question:521. Deputy Denis Naughten asked the Minister for Social Protection if she will reintroduce the mortgage interest supplement; and if she will make a statement on the matter. [40515/20]
View answerTuesday, 1 December 2020
Questions (521)
Written answers
The 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 was their sole place of residence, due to temporary unemployment or loss of earnings.
The mortgage interest supplement scheme was discontinued for new entrants from 1 January 2014, on the basis that the on-going payment of Mortgage Interest Supplement did not address the long term housing challenges for people in serious mortgage arrears and that the Central Bank's Code of Conduct for Mortgage Arrears (CCMA) provides for an appropriate framework for customers, with the responsibility of forbearance for a customer’s mortgage difficulties resting with the mortgage service provider.
Any change to this decision would need to be considered in the overall budgetary and policy context.
The most appropriate way in which customers experiencing mortgage difficulties can be supported remains through on-going engagement with their lender to explore a sustainable and appropriate response from their lending institution.
Under the CCMA (2013), measures and policies are in place to support customers in financial difficulty with their mortgage commitments. The CCMA is issued by the Central Bank under Section 117 of the Central Bank Act 1989 and ensures that the responsibility of forbearance remains with the mortgage service provider. The CCMA provides support for those that are in arrears, pre-arrears or those who fall under scope of the Mortgage Arrears Resolution Process (MARP). Under the CCMA, lending institutions are encouraging customers to contact them at the earliest opportunity regarding their concerns and any particular circumstances which may impact on the customer’s financial well-being.
A cross-industry co-ordination Group, chaired by Banking and Payments Federation Ireland (BPFI) lead to the provision of Covid 19 payment breaks introduced in March of this year. In total, 74,000 Covid 19 payment breaks were provided to private dwelling households; with 9,000 still active as at October 2020. The Covid 19 payment break initiative was discontinued on the 30th September 2020, though customers can still avail of breaks on a case by case basis via the MARP process.
The Money Advice and Budgeting Service (MABS), under the aegis of the Citizens Information Board, also continues to 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.
I trust this clarifies the matter for the Deputy.