Brian Cowen (Laois-Offaly, Fianna Fail)

It is important to recognise that the level of mortgage arrears which results in house repossessions by the lender is, thankfully, still very low in this country. In previous discussions we have had on this matter, I have stressed the need for people who are not in a position to pay or who have temporary difficulties, to make contact with the lending agencies. There are codes of practice in place which must be respected when people get into such difficulties.

As regards the specific question raised by the Deputy, in the revised Programme for Government we have further strengthened our commitment to assist mortgage holders who are under pressure due to changed economic circumstances. The programme refers to introducing new measures to protect families who are experiencing difficulties with their mortgage repayments. The existing statutory code on mortgage arrears and the recently agreed protocol between the Irish Bankers' Federation and the Money Advice and Budgeting Service on debt default will be further reviewed with a view to expanding the options available for dealing with debt. These include, for example, the use by banks and other lenders of more flexible mechanisms to avoid foreclosure in appropriate circumstances. These could also include reduced rates, longer maturity dates, rolling up of outstanding interest, banks taking equity in the house, and banks taking ownership and leasing back to the resident with payments coming off the loan.

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