Fine Gael TD for Wicklow/East Carlow, Andrew Doyle, has today reiterated that the Government is acutely conscious of the impact of debt on families across Wicklow and the country and is determined to see it resolved. People need to move forward with their lives as we begin to move into recovery.
Doyle commented “Our priority has been and remains keeping people in their homes whenever this is possible and today’s package should help to bring relief to those struggling with mortgage debt. It builds on steps that have already been taken such as establishing the Insolvency Service of Ireland and the introduction of Mortgage to Rent scheme. It will increase supports available to people and help to increase the numbers availing of them.
Doyle further explains that “In a move to protect distressed mortgage holders, the Courts are being given the power to approve insolvency deals rejected by banks where appropriate. We will have necessary legislation in place before the summer recess. In addition we will be expanding the Mortgage to Rent Scheme, which helps people stay in their home if their mortgage is unsustainable thereby increasing the number of properties that will qualify and providing greater flexibility in how the scheme works. 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”
“Strengthening the role that the Mortgage Advice and Budgeting Service (MABS) is also a key component in offering information, advice and assistance to borrowers in arrears and will help to ensure that borrowers have access to information on the range of supports and options available, advice on the ones best suited to their needs, and assistance in pursuing options, where necessary.
“Reducing the number of cases as much as possible from the court proceedings is a key requirement. Presently Judges already have the power to adjourn cases to allow time for negotiations on an insolvency agreement. Guidance will ensure use of this power becomes more systematic. We will also amend Court rules to ensure that where engagement is being advanced, a case can be taken off Court lists.
Doyle continues “Implementation of a solid insolvency arrangement that works is good for both borrowers and lenders. This is a serious problem, and we are taking meaningful steps to address it however it is important also to maintain perspective on its scale. 85% of borrowers are up to date with their payments, often with considerable personal sacrifice on the part of those concerned.
“This package strikes a balance, it helps those in difficulties while also ensuring that secured lending to young families, a vital engine of economic and social progress, continues. Furthermore we need to establish a fluid and forward thinking rental scheme to further enhance these packages” concluded Doyle