Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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416. To ask the Minister for Employment Affairs and Social Protection if consideration will be given to reintroducing the mortgage interest supplement for the duration of the Covid-19 crisis to prevent persons from falling into mortgage distress. [5293/21]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The original purpose of the mortgage interest supplement scheme (MIS) was to provide short-term support to eligible people who were unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence due to temporary unemployment of loss of earnings. 

The mortgage interest supplement scheme was discontinued to new entrants from 1st January 2014, on the basis that:

1. The on-going payment of Mortgage Interest Supplement did not address the long-term housing challenges for people in serious mortgage arrears; and,

2. The Central Bank's Code of Conduct for Mortgage Arrears (CCMA) provides for an appropriate framework for customers, with the responsibility of forbearance for a customer’s mortgage difficulties resting with the mortgage service provider. 

The most appropriate way in which customers experiencing mortgage difficulties can be supported remains through on-going engagement with their lender to explore a sustainable and appropriate response from their lending institution. Under the CCMA (2013), measures and policies are in place to support customers in financial difficulty with their mortgage commitments.  The CCMA is issued by the Central Bank under Section 117 of the Central Bank Act 1989.

The CCMA provides support for those that are in: arrears, pre-arrears or those who fall under scope of the Mortgage Arrears Resolution Process (MARP). Under the CCMA, lending institutions are encouraging customers to contact them at the earliest opportunity regarding their concerns and any particular circumstances which may impact on the customer’s financial well-being.

Banking and Payments Federation Ireland (BPFI) on behalf of its members has recently stated that the industry continues to use a case by case approach to support those customers adversely impacted by the Coronavirus pandemic, with standard payment breaks offered as  part of the wide range of solutions provided to customers.  The number of active payment breaks for Private Dwellings (PDH) mortgages continues to decline with only 2,000 PDH mortgage payment breaks currently active as at December 2020 (9,000 as at October 2020).

The Money Advice and Budgeting Service (MABS), under the aegis of the Citizens Information Board, also continues to provides assistance to people, in particular those on low incomes or living on social welfare payments, who are over-indebted and need help and advice with debt problems.  As part of its free services, MABS provides help and advice to those in mortgage arrears.

I trust this clarifies the matter for the Deputy.