27 March 2013

Comprehensive Govt plan to tackle mortgage arrears will provide much-needed relief to homeowners – Fitzgerald

Local TD and Minister for Children and Youth Affairs, Frances Fitzgerald, has said that measures introduced by the Government to help restructure mortgages would help tens and thousands of people stay in their homes.

“Last week’s Central Bank figures show that 94,500 mortgages accounts are over 90 days in arrears, and 23,500 are in arrears for over 720 days.

“Measures announced by the Government this week will go a long way towards reducing that figure by ushering in widescale restructuring of mortgages for people whose loans are in distress. The banks must now step up their engagement with borrowers in difficulties so as to allow those in arrears to stay in their homes.

“New targets stipulate that by the end of June 2013, the banks should have proposed sustainable mortgage solutions for 20% of distressed borrowers. By the end of September 2013, this will have reached 30%, and by the end of 2013, the banks should have proposed sustainable mortgage solutions for 50% of distressed borrowers.

“The mortgage arrears situation has caused huge distress to many families across Clondalkin, Lucan, Rathcoole, Newcastle and Saggart. The measures announced this week will help tens of thousands of people to stay in their homes. This Government inherited a country that was on the verge of bankruptcy, and while full recovery can’t happen overnight, the measures put in place since taking office two years ago have placed the country on a sounder footing.

“We have closed down Anglo and the IBRC, dealt with the promissory notes, brought the bank guarantee to an end and this week we have seen how the international financial markets view Ireland with exceptional interest in our first ten year bond issuance since we entered the bailout. Dealing with the mortgage arrears crisis is the next step in allowing people to deal with their financial issues and to get back to playing their part in economic recovery, something they are prevented from doing while they are strangled by debt.”