Terence Flanagan (Dublin North East, Fine Gael)
Link to this: Individually | In context

Question 143: To ask the Minister for Finance his plans for new housing schemes for home owners in significant negative equity and in financial trouble; and if he will make a statement on the matter. [43029/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

The Deputy will be aware of the Governments commitment under the Renewed Programme for Government to introduce new measures to protect families having difficulties with their home mortgage payments. Further work is ongoing on these issues with a view to early results.

This work will build on existing Government supported solutions for dealing with home owners with mortgage arrears including: application of the new Code of Conduct on Mortgage Arrears which applies to all mortgage lenders; support from the Mortgage Interest Scheme under the Supplementary Welfare Allowance system which is providing vital support for over 14,000 families with mortgage difficulties; and the provision of advice on debt management through the Money Advice Budgeting Service (MABS).

In addition the Government is also exercising its influence over those mortgage lenders covered by the Bank Guarantee Scheme including the recapitalised banks, Bank of Ireland and AIB with regard to the management of customers in arrears. I have already referred to the Code of Conduct on Mortgage Arrears which includes provision for a 6 month moratorium for those who go into arrears and 12 months in the case of the recapitalised banks.

In relation to the position of mortgage holders generally, the Irish Bankers Federation published a Statement of Intent on 10 November which provides further reassurance to homeowners who find themselves genuinely unable to maintain mortgage repayments on their principal private residence. The Statement of Intent has been agreed and supported by all IBF members and is a welcome development. It is also welcome that the IBF Oversight Committee on the implementation of the Statement of Intent will include representation from the Money Advice Budgeting Service (MABS).

The Deputy will have noted from recent debates in this House that the number of repossessions of owner occupied homes in this country remains very low particularly in comparison with our UK neighbours and other jurisdictions. The total number of owner occupied homes repossessed through the execution of court orders by the covered institutions for the period January to end September 2009 amounts to 20.