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

The Deputy will be aware that A Programme for a Partnership Government and the Action Plan for Housing and Homelessness set out the Government's priorities in relation to dealing with mortgage arrears.  The Deputy will also be aware of concerted efforts by the previous Government to resolve the mortgage arrears issue over a number of years, including revision of the Central Bank's code of conduct on mortgage arrears in the interests of fairness for consumers, overhaul of bankruptcy rules, introduction of personal insolvency legislation, establishment of a mortgage-to-rent scheme, and making available free access to up-to-date information about mortgage resolution options.  These options provide borrowers with the ability to restructure their debt in an orderly and sustainable manner. 

Following a request from me, the Central Bank completed its assessment of mortgage arrears and its report was published on the Department of Finance website last December.  The report noted that progress is well established in dealing with mortgage arrears and is clearly moving in the right direction.  The assessment finds a comprehensive range of available restructuring solutions being offered and delivered by both bank and non-bank entities.  The Central Bank considers the range of restructures offered by banks to be broadly appropriate in balancing consumer protections imperatives and maintaining a mortgage market for all borrowers and a functioning banking system. The assessment also found that overall there is strong evidence that banks and non-banks are looking to exhaust available options before moving into the legal process.

Mortgage arrears and repossessions data released by the Central Bank to the end of the third quarter of 2016 provide evidence that consistent progress is being made in addressing mortgage arrears, with the number of private dwelling house mortgage accounts in arrears continuing to fall for the 13th consecutive quarter.  In addition, over 121,000 private dwelling house mortgage accounts were classified as restructured, of which 88% were deemed to be meeting the terms of their restructure.  This shows that where borrowers actively engage with their lender with a view to agreeing a sustainable arrangement to address their mortgage arrears it is more likely that an equitable arrangement will be found.

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The Deputy may also be aware of other initiatives being rolled out across Government such as the Abhaile mortgage arrears resolution service and amendments to the mortgage-to-rent scheme which will make the mortgage-to-rent process quicker, more transparent, easier to navigate for borrowers and ultimately more accessible to more households in mortgage distress.  Pilot projects to explore potential mechanisms that would facilitate investment into the residential market by private equity firms using the mortgage-to-tent model will be undertaken with a view to facilitating greater numbers of indebted borrowers to remain in their own homes as tenants.

Finally, I would encourage all borrowers in arrears to make contact with their bank or to seek assistance from their local Money Advice & Budgeting Service, MABS.

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