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

The Deputy will be aware that the Government is very committed to reducing the level of mortgages in arrears and that significant progress has been made in this regard, as demonstrated by the latest Central Bank quarterly residential mortgage arrears and repossessions statistics for the first quarter of 2016.  He may also be aware that the Cabinet committee on housing and homelessness and associated senior officials group are meeting on a weekly basis to identify solutions to the full range of commitments in the programme for a partnership Government relating to home protection and home ownership.  This ongoing work will also consider what budgetary allocations are required to provide the mortgage resolution measures as set out in the programme for Government.

The Government attaches great importance to addressing the issue of mortgage arrears and wants to keep families in their homes and avoid repossessions in so far as possible.  In this context, it is important to note that there are a number of protections already in place to protect borrowers in arrears, including the code of conduct on mortgage arrears, the Money Advice & Budgeting Service, a dedicated mortgage advisory service, and personal insolvency solutions, including the court review of sustainable proposals for a personal insolvency arrangements involving the principal dwelling home that have been rejected by a majority of creditors.  Many of these initiatives are relatively new, having been introduced in the past 12 months, and I believe that they will generate increased borrower engagement and improved levels of resolution of mortgage accounts in arrears.

It is clear that where a borrower actively engages with his or her lender under the CCMA with a view to agreeing a sustainable arrangement to address mortgage arrears, it is more likely that an equitable arrangement will be found and that borrower will be able to remain in the family home. Data released recently by the Central Bank show that the number of mortgage accounts for principal dwelling houses in arrears has declined for 11 consecutive quarters.  More than 120,400 principal dwelling house mortgage accounts have been restructured up to the end of the first quarter of 2016.

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