Willie O'Dea (Limerick City, Fianna Fail)
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298. To ask the Minister for Social Protection if the abolition of the mortgage interest supplement will leave the State without an assistance mechanism for persons experiencing short-term difficulty paying their mortgage and for whom the lengthy and cumbersome mortgage arrears resolution process may not be suitable. [44662/13]

Joan Burton (Dublin West, Labour)
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The original purpose of the mortgage interest supplement scheme was to provide short term support to eligible people who are unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence. The supplement assists with the interest portion of the mortgage repayments only. There are currently approximately 11,000 people in receipt of mortgage interest supplement with €41.8 million provided in 2013.

Under the Code of Conduct on Mortgage Arrears, lenders are obliged to put in place Arrears Support Units to deal with borrowers under the Mortgage Arrears Resolution Process (MARP). The most appropriate way in which customers experiencing short term mortgage difficulties can be supported is through engagement with their lender under this process. Lenders must explore all options for repayment arrangements in order to determine which options are viable for each particular case. These options include interest only arrangements and deferring payment of all or part of the instalment repayment for a period.

The continued payment of mortgage interest supplement does little to assist recipients in improving the long term difficulty in addressing their mortgage problem or to provide sustainable solutions. The Department has examined a number of cases which clearly show that the significant investment by the State in providing support under the mortgage interest supplement is not reflected in the customers' outstanding mortgages or encouraged the implementation of sustainable solutions.

I am satisfied that the range of supports implemented by this Government, including the range of information and guidance resources available, are appropriate in assisting those facing mortgage difficulties following the discontinuance of the mortgage interest supplement scheme.