Dáil Éireann Debate, Thursday - 9 October 2014
42. Deputy Catherine Murphy asked the Tánaiste and Minister for Social Protection if she will restore the mortgage interest supplement payment for struggling home owners to enable them to retain their homes; and if she will make a statement on the matter. [38804/14]
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 6,700 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 were not affected by this measure and may retain entitlement to the scheme, up to 1st January 2018. However, it would be expected that during this four year period, existing customers would no longer require this support through sustainable solutions being put in place with their lenders, securing employment or exit strategies sponsored by the Department of Environment, Community and Local Government, namely the mortgage-to-rent scheme.
