Enda Kenny (Mayo, Fine Gael) | Oireachtas source

The number of mortgage accounts in arrears, that is, all arrears from one day past due, stood at 84,717 at the end of February this year. That is a decline of more than 3,000 compared to the January 2015 figure. The total number of mortgage accounts that have been restructured stood at 106,402 at the end of February. That means people were able to sit down and discuss the distress of the mortgage involved and in 106,402 cases, a sustainable solution for the future was arrived at. The number of mortgage accounts in arrears of greater than 90 days continues to fall, decreasing by 1,730 to 59,138, with a decrease of 482 mortgage accounts in arrears of greater than 720 days, which stood at 28,900 at the end of this year. The numbers in very long-term arrears is a matter of major concern. It is important to note that the latest Central Bank data show the number in arrears for more than 720 days drop for the banks in quarter 4 of 2014 for the first time. The Government wants the maximum number of mortgage holders in very long-term arrears to be able to afford their mortgage, to retain ownership of their houses where they can afford it, and if they cannot, to have viable and easily accessible options available to either stay in the house or to have access to alternative housing.

Deputy Martin mentioned repossessions. The Government does not see repossessions as a policy solution, and every action that has been taken since coming to office has been designed to ensure that the maximum number of people and families can continue to live in their houses. According to the Central Bank report from the final quarter of 2014, of the 429 properties that were taken into possession by the banks, less than one third, or 123, were repossessed as a result of a court order, while the remaining two thirds were voluntarily surrendered or were abandoned. As Deputy Martin is aware, there has been much coverage of the increase in civil bills being lodged by financial institutions. It is important to say that the commencement of the court process is not a signal or an end in itself that repossession will occur. The Minister for Finance has stated that it may often be the case that the process prompts borrowers to re-engage with the lender in the first place to find a solution. Often, those cases are adjourned. I listened to a commentary on the news recently on actual cases which allows both parties time to find a solution and to remove the bank and the borrower from the legal process. It is fair to say that while there are a number of options available involving, for example, the Money Advice & Budgeting Service, MABS, or the insolvency agency, such solutions do not work in a number of cases, and accordingly, the Government has committed to bring forward a number of further solutions that will deal with the question of really distressed mortgages where the option can be had for another alternative in respect of those borrowers so that in the vast majority of cases, the option will be there for families or tenants to remain in a house on foot of a variety of solutions.

Deputy Martin mentioned the issue of the veto. The further options that will be brought forward by the Government next week will deal with cases involving serious distress that are outside the scope of the discussions that have taken place to date, following which more than 100,000 cases have been sorted out. However, we remain concerned about the long-term mortgage indebtedness in those cases.

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