Written answers

Wednesday, 30 September 2015

Department of Social Protection

Mortgage Interest Relief Eligibility

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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73. To ask the Tánaiste and Minister for Social Protection whether the extent of the negative impact of the cessation of mortgage interest relief on particular families has been examined; whether anything can be done to support these families, where loss of the family home is imminent through no fault of the family; and if she will make a statement on the matter. [33635/15]

Photo of Kevin HumphreysKevin Humphreys (Dublin South East, Labour)
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The administration of the Mortgage Interest Relief scheme is a matter for the Revenue Commissioners and any changes to current arrangements is a matter for the Minister for Finance.

The Government’s strategy to assist those in mortgage difficulty is built around the following measures, as recommended in the 2011 Interdepartmental Mortgage Arrears Working Group (Keane Group), in four main distinct areas:

-Lenders providing sustainable and durable resolution options to their borrower;

-A social housing response sponsored by local authorities;

-Comprehensive advice to borrowers; and

-Personal Insolvency Reform.

Government affirms its support for homeowners facing difficulties in meeting their mortgage repayments and is satisfied that the most appropriate way in which customers experiencing mortgage difficulties can be supported is through on-going engagement with their lender to explore sustainable solutions.

An enhanced role of the Money Advice and Budgeting Service (MABS) as part of the Government’s Mortgage Arrears package announced in May is actively being progressed through increased dissemination of information, advice and assistance to mortgage holders through all stages of the Mortgage Arrears Resolution Process (MARP) and beyond.

The establishment of a Dedicated Mortgage Arrears MABS service, focusing on post- Mortgage Arrears Resolution Process borrowers is well underway. Special advisors in the Dedicated Mortgage Arrears MABS services will focus on post- MARP cases, assisting mortgage holders in assessing the extent to which the option on offer from the lender is the best and most sustainable option, and where required, negotiate with the lender.

Sixteen Dedicated Mortgage Arrears MABS offices are finalising arrangements for the provision of this service over the coming weeks, with plans on target to provide nationwide coverage by year end.

In addition, two pilot projects are underway comprising a Public Personal Insolvency Practitioner in Waterford MABS and the provision of bankruptcy advice in Cork MABS, to test the usefulness and applicability of such supports in MABS services and where the outcomes warrant expansion, to develop models capable of replication in other MABS services.

Together with the Insolvency Service of Ireland (ISI), a national network of Court Mentors is being established by MABS following successful completion of pilots at 6 locations - Dublin, Cavan, Wexford, Trim, Castlebar and Roscommon.

The Court Mentors will attend Court with clients and offer support and advice on Court proceedings, as well as direct referral back to MABS where a case is adjourned.

Citizens Information Board (CIB) and MABS has worked with the Courts Service and the ISI on the preparation of a Court Guide, to be available shortly.

The MABS Helpline will implement an additional layer of assessment, in order to channel debtors to the most relevant source of help, based on the nature and urgency of their situation.

The Citizens Information Board’s microsite will be re-designed and kept up to date. The MABS website is updated to detail the full range of supports and services available.

There are currently approximately 4,100 mortgage interest supplement recipients. The scheme was discontinued for new applicants from 1 January 2014, with customers availing of this support prior to 1st January 2014 retaining entitlement until the overall cessation of scheme on 1st January 2018. The continued payment of mortgage interest supplement, the purpose of which was to provide short-term support to meet mortgage interest repayments, does little to assist recipients in improving the long term difficulty in addressing their mortgage problem. It is expected that during this four year period, the existing customers, will exit the scheme through: sustainable solutions being put in place with their lenders; securing employment; or exit strategies sponsored by the Department of the Environment, Community and Local Government, such as the Mortgage to Rent Scheme.

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