Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Mortgage Interest Supplement Scheme

Dáil Éireann Debate, Wednesday - 13 May 2020

Wednesday, 13 May 2020

Ceisteanna (1176)

Éamon Ó Cuív

Ceist:

1176. Deputy Éamon Ó Cuív asked the Minister for Employment Affairs and Social Protection her plans to reintroduce mortgage interest supplement to assist those that may become redundant or be absent from work due to Covid-19 to ensure they can pay the interest part of their mortgages; and if she will make a statement on the matter. [4638/20]

Amharc ar fhreagra

Freagraí scríofa

The original purpose of the mortgage interest supplement scheme (MIS) was to provide short-term support to eligible people who were unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence due to temporary unemployment of loss of earnings.

The mortgage interest supplement scheme was discontinued to new entrants from 1st January 2014, on the basis that:

1. The on going payment of Mortgage Interest Supplement did not address the long term housing challenges for people in serious mortgage arrears; and,

2. The Central Bank's Code of Conduct for Mortgage Arrears (CCMA) provides for an appropriate framework for customers, with the responsibility of forbearance for a customer’s mortgage difficulties resting with the mortgage service provider.

The most appropriate way in which customers experiencing mortgage difficulties can be supported remains through on-going engagement with their lender to explore a sustainable and appropriate response from their lending institution.

Under the CCMA (2013), measures and policies are in place to support customers in financial difficulty with their mortgage commitments. The CCMA is issued by the Central Bank under Section 117 of the Central Bank Act 1989 and ensures that the responsibility of forbearance remains with the mortgage service provider.

The CCMA provides support for those that are in: arrears, pre-arrears or those who fall under scope of the Mortgage Arrears Resolution Process (MARP). Under the CCMA, lending institutions are encouraging customers to contact them at the earliest opportunity regarding their concerns and any particular circumstances which may impact on the customer’s financial well-being.

A cross-industry co-ordination Group, chaired by Banking and Payments Federation Ireland (BPFI), is looking at all coronavirus related issues that may impact customers. This includes both the overall economic impact of the coronavirus situation and its direct effect on customers. A number of emergency measures have also been announced by individual lending bodies including increased overdraft facilities and increased credit card and cash withdrawal limits.

The Money Advice and Budgeting Service (MABS), under the aegis of the Citizens Information Board, also continues to provides assistance to people, in particular those on low incomes or living on social welfare payments, who are over-indebted and need help and advice with debt problems. As part of its free services, MABS provides help and advice to those in mortgage arrears.

I trust this clarifies the matter for the Deputy.

Barr
Roinn