Séamus Healy (Tipperary South, Workers and Unemployed Action Group)

It is important to remember from where the mortgage debt problem came. Part of the problem was that every part of the establishment here - the banks, building societies, Government, auctioneers, developers and media - stressed how young people needed to get on the property ladder, that money was available and now was the time to get a house. Limitless money was available from banks and building societies. The media and the establishment behind the building and development boom forced young people to purchase houses and apartments at greatly inflated prices and now the chickens have come home to roost. Significant numbers of those people are not in a position to repay their mortgages and are in negative equity. Many of them have lost their jobs or had their wages and salaries reduced significantly. They are in a very difficult situation where they are in serious mortgage arrears, with many of them on the brink of losing their own homes. It is important that there is independent advocacy for people like that.

From dealing with people in mortgage arrears who come into my clinic daily, I know that the pressure on those people from the banks and building societies is absolutely enormous. They receive letters and telephone calls at all hours of the day and night. Huge pressure is being put on people by banks and building societies who gave out big mortgages, many of them for terms up to 40 years. It is important that there is an independent advocacy between these people and the various lenders.

Looking at mortgage debt alone is not enough. We need to look at total indebtedness because many people in mortgage debt are also in debt in other ways as well. The whole indebtedness problem needs to be examined. These properties should be revalued and mortgages on the basis of current valuations should be implemented. That is the way to go.

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