Mary Lou McDonald (Dublin Central, Sinn Fein)
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Question 45: To ask the Minister for Finance the position regarding his programme for Government commitments on tackling mortgage distress including increasing mortgage interest relief to 30% for first time buyers in 2004 to 2008, introducing a two year moratorium on repossessions of modest family homes when a family makes an honest effort to pay their mortgage and making greater use of mortgage interest supplement to support families who cannot meet their mortgage payments. [27660/11]

Michael Noonan (Limerick City, Fine Gael)
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I wish to confirm to the Deputy that the Government is examining a number of proposals in relation to the commitment in the Programme for Government to help those persons who are experiencing difficulty with the repayment of mortgages. With regard to the proposal relating to increasing mortgage interest relief to 30% for first time buyers who bought during the period 2004 to 2008, the position is that when the proposals have been examined and the findings presented to me, I will make any necessary decisions in the context of Budget 2012. As regards a moratorium on repossession of family homes, the Deputy might wish to note that the Central Bank's Code of Conduct on Mortgage Arrears contains the provisions set out below.

(1) Lenders must establish a Mortgage Arrears Resolution Process know as "MARP" and use this framework when dealing with borrowers who are in arrears or in pre-arrears situations.

(2) The lender must not apply to the courts to commence legal action for repossession of the borrower's primary residence until every reasonable effort has been made to agree an alternative arrangement with the borrower or his/her nominated representative.

(3) Where a borrower co-operates with the lender, the lender must wait at least 12 months from the date the borrower is classified as a MARP case (i.e. 31 days from the date the arrears first arose) before applying to the courts to commence legal action for repossession of a borrower's primary residence.

(4) Where a borrower is in mortgage arrears, a lender may commence legal action for repossession of the property without the 12 month period applying, only in the following circumstances:-

· where a borrower does not co-operate with the lender,

· in the case of fraud perpetrated on the lender by the borrower, or

· in the case of a breach of contract by the borrower other than the existence of arrears.

As regards making greater use of the Mortgage Interest Supplement Scheme, this is a matter in the first instance for my colleague, the Minister for Social Protection.