The Mortgage Arrears Information and Advice Service was established to provide a comprehensive and coordinated approach to assist people in mortgage arrears or pre-arrears in assessing their options.
The service, which differentiates between mortgage information and mortgage advice, has three elements:
- The website www.keepingyourhome.ie which was developed as the key online access portal for general mortgage information and advice and launched in June 2012.
- The Mortgage Arrears Information Helpline (phone 0761 074050) established in August 2012, provides general mortgage arrears information and signposting in relation to the Code of Conduct on Mortgage Arrears and other supports available for those in mortgage arrears or pre-arrears.
- The service to provide independent financial advice to mortgage holders who are being presented with long term mortgage resolution proposals by their lenders was launched in September 2012. The advice is provided by a panel of accountants drawn from members of the main accountancy institutes in Ireland. A county by county panel with over 2000 participating accountants is in place and their details are available on www.keepingyourhome.ie. Borrowers are free to choose their own advisor from this panel and the lender will pay €250 to the accountant of the borrower’s choice for the provision of this independent financial advice.
The Central Bank collates the information relating to the number of borrowers who have availed of the independent financial advice service on a quarterly basis commencing in Quarter 1 2013. The data supplied does not relate exactly to the reporting period as there will be delays between the time the lender makes the long-term resolution offer to the borrower, the meeting with the accountant and the receipt by the lender of the invoice.
A review of the independent financial advice element of the Mortgage Arrears Information and Advice Service was undertaken in 2013 to ensure that the service is meeting its objectives. A group comprising representatives from the Department of Finance and the Department of Social Protection was established to oversee the review. The review report has been considered by the Mortgage Arrears Implementation Steering Group and the Cabinet Committee on Mortgage Arrears and Credit Availability.
The key recommendations in the review report relate to increasing awareness among borrowers through the provision of clear and unambiguous information about the service and to increase the scope of the advice to include advice on the other mortgage debt resolution options that are now available for borrowers, so that they can fully assess their options. In that context the report recommends that consideration be given to increasing the funding for the financial advice from €250 to €500.
A stakeholder seminar was held in January 2014 to which all stakeholders were invited to discuss the recommendations of the review. An implementation plan has been prepared and discussions have commenced with the relevant stakeholders to progress the recommendations.
It is envisaged that the service will continue to be funded by the lenders and that the recommended changes to the service will be in place by the end of Quarter 2 2014.
Usage details of the services are set out in the table.
Mortgage Arrears Information and Advice Service
|
-
|
Helpline Calls
|
Visits to Keepingyourhome.ie
website
|
Financial Advice Service ( invoices received by lenders from accountants)
|
|
August 2012
|
295
|
|
|
|
September 2012
|
397
|
|
|
|
October 2012
|
459
|
*34,157
|
|
|
November 2012
|
410
|
6,434
|
|
|
December 2012
|
259
|
8,150
|
|
|
January 2013
|
577
|
9,955
|
|
|
February 2013
|
529
|
10,073
|
|
|
March 2013
|
737
|
12,243
|
54
|
|
April 2013
|
973
|
17,813
|
|
|
May 2013
|
610
|
9,463
|
|
|
June 2013
|
504
|
10,194
|
52
|
|
July 2013
|
473
|
9,632
|
|
|
August 2013
|
590
|
12,621
|
|
|
September 2013
|
521
|
8,438
|
72
|
|
October 2013
|
641
|
12,815
|
|
|
November 2013
|
440
|
10,029
|
|
|
December 2013
|
385
|
10,063
|
119
|
|
January 2014
|
665
|
10,387
|
|
|
February 2014
|
749
|
12,239
|
|
|
March 2014
|
608
|
11,817
|
**
|
|
April 2014 (to end April 4th)
|
123
|
3,074
|
|
|
Total
|
10,945
|
222,267
|
297
|
*Covers the period June 2012 to October 2012
** Not yet available from the Central Bank
