New measures will help homeowners in arrears

New measures will help homeowners in arrears – Ó Domhnaill

Fianna Fáil by election candidate in Donegal South West Senator Brian Ó Domhnaill has said that a range of new measures announced today (17th November) will help homeowners who are struggling to pay their mortgage.

Senator Ó Domhnaill said: “Recommendations made by an expert group set up to look into the issue of personal debt have the support of the government and will be rolled out shortly. They include;

· A Deferred Interest Scheme for borrowers who can pay at least 66% of the interest. This would give borrowers up to 5 years to get back on their feet.

· Lenders should consider facilitating borrowers in negative equity who wish to trade down to a more affordable home.

· Where a mortgage is unsustainable, assessment for social housing should be done before repossession takes place.

· A mechanism should be put in place to allow repossessed borrowers to remain in their homes for a time, allowing the housing authority time to source appropriate accommodation.

· A statutory non-judicial debt settlement system should be established

“Protecting family homes is a major priority for Fianna Fail. We are already helping almost 18,000 families directly through mortgage interest Supplement. We have refocused Mortgage Interest relief to help those who bought their homes at the peak of the market. In addition banks must now wait at least twelve months before they can apply for repossession. I know there are families in my own constituency of Donegal South West who have lost their jobs or have taken a pay cut and are struggling to keep up with their mortgage payments as a result. These measures in addition to the practical action we have taken to date will help them retain their home. I would urge those who are worrying about their mortgage repayments to talk to their lender. In addition confidential, free advice on coping with debt problems is always available with MABS,” concluded Senator Ó Domhnaill.

Posted: Nov 17, 2010     |     Categories: Donegal South West