Dáil Éireann Debate, Wednesday - 30 April 2014
302. Deputy Thomas P. Broughan asked the Minister for Social Protection if she will provide, in tabular form for the years 2012, 2013 and to date in 2014, the number of persons in receipt of mortgage interest supplement and the overall cost of the payment in each of those years; and the expected number of persons who will exit the scheme this year and in each year up to 2017. [18689/14]
Amharc ar fhreagraThe original purpose of the mortgage interest supplement scheme was to provide short-term support to eligible people who are unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence. The supplement assists with the interest portion of the mortgage repayments only. There are currently approximately 8,500 people in receipt of mortgage interest supplement for which the Government has provided €17.9 million in 2014.
The Government’s strategy to assist those in mortgage difficulty is built around the following measures, as recommended in the 2011 Interdepartmental Mortgage Arrears Working Group (Keane Group), in four main distinct areas:
- Lenders providing sustainable and durable resolution options to their borrowers.
- A social housing response (Mortgage to Rent).
- Comprehensive advice to borrowers.
- Personal Insolvency Reform.
In the context of the overall strategy, the continued payment of mortgage interest supplement does little to assist recipients in improving the long term difficulty in addressing their mortgage problem and provides little incentive for the lender to provide sustainable solutions.
The most appropriate way in which customers experiencing mortgage difficulties can be supported is through engagement with their lender under the Mortgage Arrears Resolution Process (MARP) which explores the various options available to the person and provides sustainable solutions.
As part of the fiscal adjustment required for Budget 2014, provision was made for the discontinuation of entitlement to mortgage interest supplement for all new applicants from 1 January 2014. Existing customers are not affected by this measure and may retain entitlement to the scheme over a four year period, up to 1st January 2018.
This timeframe allows for a winding down – primarily through securing employment, sustainable solutions being put in place by the lenders or through the use of exit strategies sponsored by the Department of Environment, Community & Local Government (DECLG) namely the Mortgage-to-Rent scheme.
The number of mortgage interest supplement recipients at the end of each year from 2012 to 2013 and total scheme expenditure for those years are provided in the tabular statement. Forecast recipients exiting the scheme from 2014 to 2017 are also provided.
Mortgage Interest Supplement – Recipients and Expenditure 2012-2013
|
Year |
Recipients at Year End |
Expenditure €000 |
|
2012 |
14,597 |
55,082 |
|
2013 |
9,768 |
35,049* |
Mortgage Interest Supplement – Forecast Persons Exiting 2014 - 2017
|
Year |
Recipients Exiting |
|
2014 |
3,500 |
|
2015 |
2,100 |
|
2016 |
2,100 |
|
2017 |
2,068 |
