Robert Troy (Longford-Westmeath, Fianna Fail)
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153. To ask the Minister for Finance if a scheme will be introduced as part of budget 2019 to assist mortgage holders that find themselves in mortgage difficulty on a short-term basis, for example, if a person becomes temporarily unemployed; his views on whether a scheme similar to mortgage interest relief is essential in such cases; and if he will make a statement on the matter. [38754/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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Decisions on taxation matters including decisions (if any) in relation to mortgage interest relief are made in the context of the annual Budget process, and the Deputy will understand that I cannot give any indications of my plans for Budget 2019 at this time. In last year’s Budget I announced that in fulfilment of a Programme for Government commitment, mortgage interest relief for owner-occupiers would be extended on a tapered basis to end-2020 for the remaining recipients of the relief. The process of phasing out mortgage interest relief for homeowners has been under way since 2009.

With regard to mortgage holders that find themselves in mortgage difficulty, there are various supports available to them. For example, the Abhaile service which was launched in October 2016 provides financial and legal advice and support to homeowners. This Government funded mortgage arrears resolution service gives indebted borrowers access to State-funded panels of qualified and regulated financial or legal professionals to give advice and assistance on how to resolve their mortgage arrears via a voucher system. The scheme has been very successful in helping those in long-term arrears and it is important to highlight that over 10,000 vouchers for consultations have issued since the scheme began in 2016. It aims to help mortgage holders in arrears to find the best solutions and keep them, wherever possible, in their own homes.

The Insolvency Service of Ireland continues to assist distressed borrowers by returning them to solvency. In over 90% of Personal Insolvency Arrangement (PIA) cases, debtors have been able to remain in their homes. The latest Insolvency Services Statistical Report for Q2 2018 shows that over 981 new applications were received in the quarter. This high level of new applications has been maintained in large part because of the Abhaile Scheme.

The Code of Conduct on Mortgage Arrears (CCMA) which is part of the Central Bank’s Consumer Protection Framework provides protections to consumers whose loans are in mortgage arrears. It is a statutory Code first introduced by the Central Bank in February 2009, with the current CCMA becoming effective from 1 July 2013. The CCMA provides a strong consumer protection framework, aimed specifically at the process to be followed by relevant firms, to ensure borrowers in arrears or pre-arrears in respect of a mortgage loan secured on a primary residence are treated in a timely, transparent and fair manner. I have asked the Central Bank to carry out a review of the Code of Conduct on Mortgage Arrears (CCMA) to ensure that it remains effective and I expect to receive a report from the Central Bank next month.

The Mortgage to Rent (MTR) Scheme is a government initiative to help homeowners who are at risk of losing their homes due to mortgage arrears. To increase borrowers’ awareness and understanding of MTR a new dedicated mortgage to rent website, www.mortgagetorent.ie, has been developed by the Department of Housing, Planning and Local Government together with the Housing Agency with input from the Abhaile Service and the Insolvency Service of Ireland.