Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

There are huge differences among individuals with impaired mortgages. Many people simply want an interest-only arrangement while the main wage-earner is ill, while the second earner takes a year out to have a baby or while there is some crisis in the family. Many people are quite happy with an interest-only arrangement. Other people are happy if they get an interest-only arrangement and an extension of the mortgage. The standard mortgage in AIB is 20 years, and I am sure this is no different elsewhere. If we look at what is happening in other countries, extensions of maturity are viable because the average mortgage in Ireland is so short. A combination of an interest-only arrangement and moving out the maturity can help many people and is a viable option.

Although averages are always a bit misleading, the average arrears in AIB is €13,000, according to one of its directors, yet there are people who are spending €15,000 on their credit cards. When one looks at it that way, it is not huge. It might be huge for an individual couple but, overall, I cannot see any reason, if this is addressed systematically and in an organised way, the banks cannot work their way through this for the benefit of people with impaired mortgages. That is what is now being driven hard by both the Central Bank and my officials in the Department of Finance. Of course, there is a Cabinet sub-committee, chaired by the Taoiseach, that is overseeing all this work. I hope the situation improves rapidly.

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