A plan to help those falling behind on mortgage repayments is still some time off

THE PERSISTENT claims from Government ministers they are doing all they can as quickly as possible to try to resolve the problem of mortgage arrears and restructured loans probably ring a little hollow for the almost 100,000 people affected.

Latest figures from the Central Bank show about 8.1 per cent of all home loans, or 62,970, have fallen behind in repayments by 90 days or more – and make it clear the problem is getting worse.

In all likelihood the figures are even worse than this already, as they do not include mortgages with arrears of less than 90 days. Fianna Fáil finance spokesman Michael McGrath yesterday said the number of mortgages in difficulty would be closer to 150,000 when these were taken into account.

With another austerity budget just weeks away and some elements of it having been leaked via the German parliament, Irish consumers are likely to find themselves worse off by more than €1,000 a year next year, which will mean even more people will find it impossible to make ends meet and will fall into arrears.

Minister for Social Protection Joan Burton has repeatedly insisted the Government is moving as fast as it can to implement proposals contained in a major mortgage arrears report which was published weeks ago.

But even she was forced to admit no actual decisions on the proposals in the Keane report have been taken. She has said the adoption of many of the proposed reforms will have to wait until legislative changes to the personal insolvency laws come into force next year.

Among the proposals contained within the Interdepartmental Mortgage Arrears Working Group chaired by Declan Keane was the introduction of two “mortgage to rent” social housing schemes which would see approved housing agencies taking ownership of homes in specific circumstances, or the leasing of houses by banks to local authorities which would in turn rent them to former owners.

It also recommended the mortgage interest supplement should be curtailed and replaced with a more sustainable solution, while an independent mortgage advice function to advise and support mortgage holders in assessing their options and to build trust in the debt resolution process should be provided.

However, none of these things are likely to happen until well into next year at the very earliest.

Personal insolvency is central to solving the crisis and will be “the most challenging piece of legislation” to come before the Dáil, according to Ms Bruton. Minister for Justice Alan Shatter is said to be “working flat out on it” but there is no timeframe for this other than “as soon as possible”.

For the thousands of people facing Christmas while falling further and further behind in their mortgage loan repayments, it cannot come soon enough.