Micheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

From last week’s presentation to the Oireachtas finance committee by the Governor of the Central Bank, Patrick Honohan, the Taoiseach will be aware there are now more than 97,400 mortgages in arrears for over 90 days. The Central Bank is warning of a €9.3 billion mortgage debt mountain. The Governor is very unhappy with the response of the banks to this particular crisis which is causing immense distress to thousands of families, affecting their capacity in terms of day-to-day living.

He confirmed that, at the end of June, 74,000 of the 98,000 mortgage holders in arrears for more than 90 days were not yet in arrangements with their lenders. Effectively, 75% of distressed mortgages are not being dealt with. That is an extraordinary revelation by the Central Bank Governor and causes deep concern across the country. He also accused the main banks of engaging in wishful thinking that the mortgage arrears crisis would cure itself. What is more alarming is that not only are the banks not moving fast enough to tackle the problem but that the majority are going down the repossession or surrender route. Almost two thirds of mortgage holders in arrears have been threatened with legal action. Of the 35,000 proposed resolutions offered by the banks by the end of June, 62% referred to surrender or repossession of property.

The Taoiseach has said time and time again that repossession would be the last resort. We now know that repossession and evictions are the first resort, not the last as promised by the Government. Will the Taoiseach intervene and establish an independent office to deal with this issue once and for all and ensure those in mortgage arrears get a fair hearing from their banks?

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