Couple lose home after supplement withdrawn

A COUPLE who had their mortgage interest supplement withdrawn by the Department of Social Protection were one of four families who lost their homes at the High Court yesterday.

The Co Carlow couple were initially granted mortgage interest supplement to help them after they lost their jobs in 2008, but the short-term payment was withdrawn at the end of 2010.

They had borrowed €206,000 in 2006, counsel for subprime lender Start Mortgages told the court. They began to default on their repayments of over €1,600 a month in 2007 and now owed arrears of more than €55,000.

The couple, who were not in court, met a Start Mortgages debt counsellor and were assessed as having a joint monthly income of €1,400 as well as credit union and credit card loans. They told the counsellor they could not afford to pay more than €40 a week towards the mortgage. The counsellor advised them to reapply for mortgage interest supplement.

The couple made the €40 repayments for a few months and then offered to increase repayments to €80 a week, but were then told the mortgage was unsustainable.

Ms Justice Elizabeth Dunne said that despite their genuine efforts, it was never going to be possible for the couple to repay the debt. She granted an order for possession to the lender with a stay of execution of six months.

In a case involving GE Capital Woodchester Homeloans, the court was told an agreement had been reached with a Kildare couple to make reduced repayments, but the husband became ill and did not keep up the new payments.

The couple’s counsel said the man had been out of work for three months, but had now returned on a three-day week and would be fit for full-time work by April. He would then be in a position to meet the new repayments.

The lender’s counsel said the lender said he was unwell for one reason and the medical certificate gave a different reason for his illness. The couple had also broken temporary arrangements in 2009, 2010 and 2011. They now owed arrears of over €50,000. After a brief adjournment, the parties told the court they had reached agreement. The couple would not object to the order for possession if they were granted a stay of 10 months.

Start Mortgages was also granted possession orders for family homes in Donegal and Kilkenny.