Dáil Éireann Debate, Tuesday - 13 June 2023
819. Deputy Mairéad Farrell asked the Minister for Social Protection if there are supports available for mortgage-holders who have lost income due to long-term illness or disability to help them stay in their own home; and if she will make a statement on the matter. [27856/23]
View answerIf a person has lost their employment due to long-term illness or disability they may be entitled to a disability payment from the Department. The two long-term disability payments are Invalidity Pension and Disability Allowance.
Invalidity Pension is a scheme based on Pay Related Social Insurance contributions. If a person does not have enough social insurance contributions, they may qualify for Disability Allowance, which is a means-tested payment for people with a disability.
There are no specific supports from my department regarding mortgage costs. Formerly, the mortgage interest supplement scheme (MIS) provided 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 2011 Inter-Departmental Mortgage Arrears Working Group Report, known as the Keane Report, identified mortgage interest supplement as an inappropriate long-term support. The central tenet of the report’s findings was that mortgage interest supplement did little to assist families in improving the long-term difficulty in addressing their mortgage difficulties. The scheme only covered the interest payments on the mortgage; it did not reduce the value of the outstanding mortgage and, in effect, acted as a subsidy to the lending institution while creating a potential welfare trap for the customer, with customers accumulating arrears whilst receiving support.
The mortgage interest supplement scheme was discontinued for new entrants from 1 January 2014. The most appropriate way for customers experiencing mortgage difficulties is through on-going engagement with their lender to explore a sustainable and appropriate repayment structures with their lending institution.
Under the Central Bank's Code of Conduct for Mortgage Arrears (CCMA), measures and policies 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, providing an appropriate framework for customers with the responsibility of forbearance for a customer’s mortgage difficulties resting with the mortgage service provider. Under the CCMA, lending institutions encourage customers to contact them at the earliest opportunity regarding concerns or particular circumstances which may impact their financial well-being. The CCMA provides support for those in: arrears, pre-arrears or who fall under scope of the Mortgage Arrears Resolution Process (MARP).
Government provides services which assist and advise those in financial difficulty:
ABHAILE is the national mortgage arrears resolution service. It is provided free of charge to people in home mortgage arrears at risk of losing their home. ABHAILE is focused on providing expert financial, insolvency and legal advice aiming to put in place solutions and wherever possible enable the borrower to remain in their home.
The Money Advice and Budgeting Service (MABS), under the aegis of the Citizens Information Board, provides support free of charge to people, in particular those on low incomes or living on social welfare payments, with money advice, budgeting, tackling debt and mortgage related debt. MABS offer support online, over the phone and in person.
In collaboration with MABS, the Banking and Payments Federation of Ireland (BPFI) has launched a new online resource, DealingWithDebt.ie. A nationwide information and awareness campaign launched this week will encourage people to talk to their lender or credit services provider regarding financial difficulties concerning their mortgage or other repayments due to the current cost of living pressures.
I trust this clarifies the matter for the Deputy.
