Frank Fahey (Galway West, Fianna Fail)

I thank the Labour Party for tabling this motion. However, I believe no family home would be repossessed when the home owner is making a genuine attempt to repay his or her mortgage. While extending the moratorium to 24 months may be helpful, the measures being taken by the Government to ensure the banks and building societies address this issue in an overarching way is significant.

There is a need for banks to reduce interest rates or allow people to pay only the interest when they are in repayment difficulties. The same applies to longer maturity dates and the rolling up of outstanding interest which can be added to the principal of the loan. The other initiative of where the bank would either take equity or even ownership of a house and lease it back to the borrower using the rent as repayment of the loan is a good development. It is important that people with mortgage arrears are not frightened. While we criticise the banks and building societies in many ways, they are all anxious to engage with and be of assistance to their customers to ensure they can remain in their houses and make repayments to the best of their ability.

Problems only arise when borrowers ignore the pleadings of the bank or building society to deal with the issue of arrears. I have found in my constituency that borrowers get into trouble when they ignore the pleadings of the banks, not knowing there is assistance for them. Those unemployed are able to draw the mortgage supplement from community welfare officers. Many are not aware that if they pay only interest on their mortgage, the community welfare officer will refund them the interest or a portion of it. I urge the Minister to ensure that for the duration of this recession those who are genuinely unemployed will have the 12-month period extended on a yearly basis until such time as they come through their problems. The Government has come up with a series of initiatives. There is no need for people to be worried about not being able pay their mortgage. Substantial assistance and various support mechanisms are in place to assist those who cannot repay their mortgages. When this recession works itself through, they will be back in employment and be able to repay their mortgages, both interest and principal.

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