Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

I welcome Trim's Men's Shed with us in the Gallery. I commend all the Men's Sheds across the State for the work they do.

Ó mhí Iúil na bliana seo caite, tá rátaí úis morgáiste méadaithe sé huaire ag an mBanc Ceannais Eorpach. Tá cuma go n-ardóidh an banc na rátaí seo arís an tseachtain seo chugainn, rud a chiallaíonn go mbeidh na mílte oibrithe agus teaghlaigh ag díol na céadta euro breise in aghaidh na míosa ar an gcostas a bhaineann le díon a choinneáil os cionn a gcloigne i gcomparáid leis an am seo anuraidh. Inné, d’fhoilsigh Banc Ceannais na hÉireann a mheasúnú ar an tionchar a bheidh ag na harduithe rátaí seo ar theaghlaigh le morgáistí agus fuarthas amach go bhfuil 20% dóibh siúd a bhfuil morgáiste á dhíol acu, ar an meán, ag díol €4,860 níos mó ar a gcuid morgáistí i gcomparáid le mí Iúil anuraidh. Caithfidh an Rialtas faoiseamh ar ús morgáiste a thabhairt isteach agus é seo a dhéanamh gan mhoill.

Since July last year the European Central Bank, ECB, has increased mortgage rates six times. It is anticipated that the ECB, when it meets this day next week, will increase rates again. This means that tens of thousands of workers and families are paying hundreds of euro extra per month compared with where they were last year in the effort to keep a roof over their heads. For those with even a modest mortgage this can equate to thousands of euro extra per year. This as the Tánaiste knows is on top of a cost-of-living crisis that mortgages aside, is putting real financial pressure on households. For those whose mortgages have been sold to vulture funds, a policy with the Tánaiste’s party, in opposition, facilitated, the situation is unbearable for many. A mortgage holder whose mortgage was sold to Pepper contacted me recently. Her interest rate has increased from 4.5% to 8% and her mortgage repayments have increased by €300 per month. That is more than €3,500 per year. With this income shock she is terrified of having to cut back on her payments and falling into mortgage arrears. Another borrower contacted me whose mortgage was sold by Permanent TSB to a vulture fund. She has seen her repayments increased by €523 per month. That is more than €6,000 she has to find. That is the increase. These are not isolated cases. Yesterday the Central Bank published its assessment of the impact of rate increases on mortgage holders. It found that 20% of all mortgage holders are paying on average €4,860 more on servicing their mortgage compared with July of last year. That is an impossible sum for many families to make up. Arrears will increase as a result.

Despite the report of the Central Bank pointing out that 20% of all mortgage holders are seeing a 50% increase in the cost of servicing their mortgages, the solution offered by the Government has been to do nothing. This is despite the fact that Fianna Fáil campaigned to maintain mortgage interest relief when it was in opposition. Sinn Féin has a proposal to introduce mortgage interest relief that will absorb a portion of the borrower’s increased interest cost, benefiting families by up to €1,500. As with every measure to combat the cost-of-living crisis, the State cannot cover the entire cost. However, it can help. It can lend a helping hand. The reality is that tens of thousands of workers and families need support. Therefore, the Government should support Sinn Féin’s proposal and mortgage interest relief should be introduced without delay. However, last night the Tánaiste, his party and his Government colleagues voted against that.

What is the Tánaiste going to do? What policy actions will he take? What actions will he take to support those families who are under severe pressure due to a dramatic increase in their mortgage costs?

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