New mortgage arrears measures will help struggling home owners – Conway

Thursday, May 14, 2015

“The Government has agreed a number of new measures to support mortgage holders who are in arrears. These measures build on the action already taken and aim to increase the supports available to people in arrears and to increase the numbers of people availing of them.

“In a major reform of the Personal Insolvency framework, the Government has agreed to give Courts the power to review and, where appropriate, to approve insolvency deals that have been rejected by banks. The Government will legislate to give effect to this change before the end of the summer.

“This move will protect distressed mortgage-holders from any unfair lack of cooperation from their banks when it comes to seeking to agree a personal insolvency solution.

“This is expected to see more cases processed to a successful outcome through the Personal Insolvency framework. The process seeks to ensure that fair and sustainable deals are upheld for struggling borrowers willing to work their way out of difficulties with a view to keeping their family home.

“The Mortgage-to-Rent scheme will be expanded, including increasing the property value thresholds that apply. The new thresholds make the scheme more flexible and accessible.

“The Government has also agreed that the Money Advice and Budgeting Service (MABS) will play a greater role in offering information, advice and assistance to borrowers in arrears. This will ensure that borrowers have access to information on the range of supports and options available, advice on the ones most suited to their needs, and assistance in pursuing such options, where necessary. MABS will be working closely with the Insolvency Service of Ireland (ISI).

“Fine Gael in Government is absolutely committed to helping people in arrears to reach sustainable solutions. We want to help more people to access the supports, options and solutions available and, in particular to support mortgage holders in long term arrears.”