Minister Coffey welcomes additional supports to assist people in mortgage arrears

Fine Gael Waterford Minister Paudie Coffey has welcomed the announcement that the framework to support mortgage holders in arrears has been strengthened. Minister Coffey said while the number of people in mortgage difficulties has decreased significantly it is good news that those still in difficulty are being provided with a stronger options to assist them deal with their arrears issues and stay in their own homes.

“The Government will give the Courts the power to review and approve insolvency deals that have been rejected by the banks where the court deems it appropriate and therefore this measure takes the final decision out of the hands of the bank. These new powers will be in place before the summer recess.

“The mortgage arrears crisis was another legacy issue that this government inherited as a result of the Banking and Property bubble collapse. Since this government came to office, we have introduced a number of options that have led to 115,000 sustainable solutions being found to date. The number of households in mortgage arrears has fallen from a peak of 13% in mid-2013 to just over 10% at the end of last year; still too many arrears cases but considerable progress is being made.

“This government is committed to ensuring that as many homeowners as possible keep their home. That is why the government has agreed that the Monetary Advice and Budgetary Services (MABS) will play a greater role in offering information, advice and assistance to borrowers in arrears. MABS will be working closely with the Insolvency Service of Ireland to offer that assistance to homeowners who are in mortgage distress.

“Finally the Government will be making changes to the Mortgage to Rent Scheme that will make the scheme less restrictive than it currently is. This is a welcome intervention and will mean people will have more flexible mortgage to rent options that will offer a housing solution to meet their needs.

It is a priority for government that people retain full ownership of their homes; however for those with unsustainable mortgages, the mortgage to rent scheme will provide a vital solution or option that allows people to dispose of their mortgage while still remaining in their homes. It is now imperative that the banks, that were all bailed out by the Irish Taxpayer, now proactively engage with mortgage holders in arrears to deliver sustainable solutions.”

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