Fianna Fáil will protect family homes

Date: 13/02/2011
Posted by: Darragh

Fianna Fáil Front Bench Spokesperson Darragh O’Brien has outlined the party’s commitment to helping homeowners and those in mortgage difficulties.

“Turning around the economy and creating jobs are rightly at the centre of this election campaign. Fianna Fáil’s plans are grounded in the reality that we face. We are making no new spending commitments whatsoever during this campaign. There are no gimmicks and no vague costings. We are doing this so that our economy can recover, so that confidence and hope can return, particularly to home owners who are worried about their mortgages.”

“We need growth in our economy for confidence to return and that is why we are sticking to the National Recovery Plan. We expect growth this year and up to 2.75 per cent over the next three years. Both our foreign owned and indigenous exporting companies have been extremely resilient throughout the downturn. Already, there is evidence of progress as our exports are at their highest level in our history.”

“Fianna Fáil is very conscious of the high value placed on home ownership in Ireland and in particular of the efforts Irish people make to secure and retain their own home. We need to support home owners who are under pressure.”

The Dublin North deputy says that it is important that people are aware of the supports that are available.

“There is a code to protect homeowners and we require banks and other lenders to comply with this code. The aim of the code is to make every support possible to support homeowners in these difficult times. There is now a deferred interest scheme (DIS) that allows borrowers who can pay at least 66% of their mortgage interest and will provide eligible mortgage holders with an extended period to get back on their feet. Furthermore under the DIS, deferred interest is put into a deferred interest account and no interest is charged on this interest.”

Points to note:

• The code also prohibits lenders from moving homeowners in arrears off existing tracker mortgages.
• Homeowners in arrears who co-operate with their lenders under a Mortgage Arrears Resolution Process (MARP), which has been put in place in all the regulated institutions, will not incur penalty interest charges.
• Homeowners in financial difficulties, but not in arrears, will be allowed to have their cases dealt with under the MARP.
• Harassment of mortgage holders through unsolicited communications has been outlawed;
• The existing 12 month moratorium on legal action in arrears cases is restated and clarified in the new code.
• Qualifying loans taken out in 2012 will receive relief at a reduced rate of 15% FOR FIRST TIME BUYERS AND 10% for non first time buyers with ceilings of €6000 per annum for married couples and €3000 per annum single people.
• Lenders representing the majority of the market have indicated their willingness to implement the deferred interest scheme.
• Fianna Fáil will amend the enforcement of court orders act to prohibit the granting of a court order for the repossession of a primary family residence unless all of the steps above are met to the satisfaction of the court.
• Other important measures in place to assist consumers who have fallen into arrears or who are experiencing difficulties servicing their mortgage repayments include: - the Mortgage Interest Supplement (MIS) Scheme, which currently supports approximately 18,000 mortgage-holders; and - the Money Advice and Budgeting Service (MABS), which provides a national, free, confidential and independent service. MABS has 53 offices nationwide and also operates a helpline to assist people with debt problems.