Finian McGrath
Ceist:225. Deputy Finian McGrath asked the Minister for Finance his views on a matter (details supplied) regarding mortgages; and if he will make a statement on the matter. [10539/15]
Amharc ar fhreagraTuesday, 10 March 2015
Ceisteanna (225)
Freagraí scríofa
I have been informed that the bank has a comprehensive range of sustainable solutions available for customers in mortgage difficulties. Customers in arrears will be reviewed for eligibility based on affordability, their willingness to prioritise their mortgage payments and engage with the bank. The bank offers a Mortgage to Rent solution to the customer if they are deemed eligible.
From a general policy perspective, the approach of the Government is to support people in genuine mortgage arrears and where feasible to put in place a sustainable restructure to address and resolve such a difficulty. This is clearly set out in the Code of Conduct on Mortgage Arrears where it requires a lender in respect of a co-operating borrower to explore all of the options for an alternative repayment arrangement offered by that lender and that a lender must document its consideration of each option examined and the reasons why the options offered/not offered to the borrower are/are not appropriate and sustainable.
If a solution cannot be agreed between borrower and lender, or if it is agreed that a mortgage restructure is not a sustainable solution, there are alternative mechanisms available to allow a debtor remain in the house in appropriate cases. For example, the Mortgage to Rent scheme is available in cases where the house and household would be appropriate and eligible for social housing. Where the borrower and lender cannot agree on a sustainable mortgage restructure, the debtor has the option to formulate and propose a PIA to his/her secured and other creditor(s). This initiative rests solely with the debtor and, in formulating a PIA, a personal insolvency practitioner is under an onus, insofar as is reasonably practicable, to formulate the proposal on terms that will not require the debtor to dispose of an interest in or cease to occupy a principal private residence.