Marcella Corcoran Kennedy (Laois-Offaly, Fine Gael)

I welcome the opportunity to debate the findings of the Keane report. The issue of mortgage arrears is a very serious matter which many constituents have brought to my attention over the past months. Not only are such people in mortgage arrears but they also have high levels of personal debt, credit card, bank loans or credit union borrowings. In fact, some have advised me that their mortgage not only purchased their house but also their car and, in some cases, their honeymoon. The recklessness which led us to this place during the so-called Celtic tiger years was widespread. The Government and the Financial Regulator appeared to have a total hands-off policy during this time of house-buying mania, allowing the banking system to not only loan money to people without proper scrutiny but to allow them offer unsolicited loans to customers. Encouraging older home owners to release equity in their homes to enable the next generation to get on the property ladder was the order of the day. It was all about commission, as far as I can see.

It is staggering to learn that by June of this year, 45,000 households were in mortgage arrears for more than 90 days. From conversations with my constituents it appears there are different types of borrower affected by mortgage debt. First, the borrower who should never have been loaned the money in the place, because of an unstable income stream or a low level of income which could not sustain regular mortgage payments or take any kind of loss of income. Second, the borrower who could afford a mortgage but because of pay cuts or the loss of a partner's income, got into difficulties with payment and is also in negative equity. Third, the speculator who may already own his or her own home or have a small outstanding mortgage but who dabbled in becoming a landlord and purchased another property to let. The needs of these borrowers are all different and any attempt to address their situations must reflect these differences.

People in this country are not sleeping at night due to the stress of their indebtedness and the potential loss of their home.

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