Dáil Éireann Debate, Tuesday - 24 October 2017
18. Deputy Eugene Murphy asked the Minister for Finance the number of mortgage holders who have entered into a restructuring arrangement that included lengthening the term of the loan in an attempt to deal with mortgage debt in the past five years; and if he will make a statement on the matter. [44539/17]
Amharc ar fhreagraAs at end-June 2017, the Central Bank figures state that 120,398 outstanding (PDH) mortgage accounts were restructured; 15,371 restructures (12.8%) were term extensions only, without any other restructure arrangement in place. In accounts where restructures include term extension as a part of the modification (i.e. multiple restructure types), 30,029 outstanding accounts incorporated a term extension as at end-June 2017.
In relation to the number of mortgage holders that have entered into a restructuring arrangement that included lengthening the term of the loan to deal with mortgage debt in the past five years , the Central Bank have informed me that 373,886 Principal Dwelling Houses (PDH) mortgage accounts entered restructuring arrangements over the past 5 years (Q3 2012 - Q2 2017).
The Central Bank of Ireland Residential Mortgage Arrears and Repossessions Statistics show that during this period, 35,588 account restructures were agreed incorporating a term extension. This restructure total includes both accounts in arrears, and accounts where no arrears apply. These include first time restructures, multi-restructure arrangements and further modifications of existing restructure. In some cases, term extension is part of a wider modification, involving multiple restructure types.
This 373,886 PDH figure represents accounts ‘added’ to the restructure category. It includes both accounts in arrears, and accounts where no arrears apply and includes first time restructures and further modifications of existing restructure over the past 5 years. An addition could represent a new restructure arrangement for that account, and could be a second, third or subsequent restructure arrangement for a particular account. The figure excludes double counting of accounts that have multiple restructure arrangements in a given quarter, these accounts are counted once in a given quarter. However, an account may be included multiple times if there were subsequent restructure arrangement for a particular account over the 5 year period.
Further breakdowns are not available from the Central Bank.
Where a borrower actively engages with their lender it is more likely that an equitable arrangement will be found helping the borrower to stay in their family home. I would urge borrowers in arrears, who have not done so, to contact their lender or MABS for an independent assessment of their situation and advice on options.
I would also like to draw the Deputy's attention to recent progress made by the Government in assisting those in mortgage arrears. The Abhaile service helps borrowers in arrears to find the best solutions and keep them, if possible, in their own homes. This is assisting borrowers, particularly those in longer term arrears. A dedicated adviser will work with borrowers in arrears and their lender to find the best solution for them.
Borrowers can get free advice from an expert financial adviser who can help them to work through their financial situation and where possible help them to remain in their home. An Expert adviser could be from MABS or a Personal Insolvency Practitioner (PIP) or an accountant.
Borrowers may also need legal advice and under Abhaile they can have a free meeting with a solicitor.
If called to court to face repossession proceedings on their home, they will be able to meet a Duty Solicitor at the court. A MABS staff member will also be present at court to help them.
A Helpline is available Monday to Friday and a face-to-face service which is completely free, confidential and independent is also available in more than 60 MABS locations nationwide.
