FF proposals on Mortgage Interest Supplement

[Brendan Burgess]

[FONT=&quot]Mortgage Interest Supplement [/FONT]



[FONT=&quot]F[/FONT][FONT=&quot]i[/FONT][FONT=&quot]ann[/FONT][FONT=&quot]a Fáil believes that the Mortgage Interest Supplement Scheme has a crucial role to play in preventing unwarranted and unnecessary repossession of family homes.[/FONT]

[FONT=&quot]H[/FONT][FONT=&quot]o[/FONT][FONT=&quot]w[/FONT][FONT=&quot]eve[/FONT][FONT=&quot]r[/FONT][FONT=&quot], we believe that the scheme needs to be reformed.[/FONT]



[FONT=&quot]Th[/FONT][FONT=&quot]e reforms which we are proposing below dovetail with work that has been ongoing in the Department of Social Protection since last year and the recommendations of the Expert Group on Mortgage Arrears and Personal Debt:[/FONT]





[FONT=&quot]•[/FONT][FONT=&quot]S[/FONT][FONT=&quot]e[/FONT][FONT=&quot]t up a central Mortgage Interest Supplement processing unit in the Department of Social Protection to ensure uniform and speedy processing of Mortgage Interest Supplement (MIS) claims.[/FONT]


[FONT=&quot]•[/FONT][FONT=&quot]E[/FONT][FONT=&quot]nsu[/FONT][FONT=&quot]r[/FONT][FONT=&quot]e that MIS does not cease without the long term housing needs of recipients being met.[/FONT]


[FONT=&quot]•[/FONT][FONT=&quot]A[/FONT][FONT=&quot]bo[/FONT][FONT=&quot]li[/FONT][FONT=&quot]s[/FONT][FONT=&quot]h the rule excluding people from receiving MIS where a property is offered for sale (needs secondary legislation)[/FONT]


[FONT=&quot]•[/FONT][FONT=&quot]A[/FONT][FONT=&quot]bo[/FONT][FONT=&quot]li[/FONT][FONT=&quot]s[/FONT][FONT=&quot]h the ’30 hour rule’ – this would allow couples/single people who, due to the economic downturn have suffered a significant loss of income and now find themselves in a distressed mortgage, receive Mortgage Interest Supplement and work for over 30 hours per week.[/FONT]


[FONT=&quot]•[/FONT][FONT=&quot]E[/FONT][FONT=&quot]nsu[/FONT][FONT=&quot]r[/FONT][FONT=&quot]e while Mortgage Interest Supplement is being paid that lenders cannot demand any capital repayments to ensure that the borrower is not put under further financial strain.[/FONT]


[FONT=&quot]•[/FONT][FONT=&quot]W[/FONT][FONT=&quot]he[/FONT][FONT=&quot]r[/FONT][FONT=&quot]e MIS is being paid to a borrower, lenders will not be allowed charge interest over the rate agreed for the loan or the market rate whichever is less.[/FONT]


[FONT=&quot]•[/FONT][FONT=&quot]A[/FONT][FONT=&quot]l[/FONT][FONT=&quot]l applicants to be afforded a six month period of forbearance with the lender before the State intervenes in providing MIS. No MIS would be payable for the first six months of difficulties.[/FONT]

[FONT=&quot]•[/FONT][FONT=&quot]A[/FONT][FONT=&quot]l[/FONT][FONT=&quot]l applicants for MIS to be required to consult with MABS and have a statement of affairs prepared by them before an application for MIS can be approved.[/FONT]


[FONT=&quot]•[/FONT][FONT=&quot]N[/FONT][FONT=&quot]o legal action should be taken by the lender while MIS is being paid and the borrower is cooperating with the lender.[/FONT]


[FONT=&quot]•[/FONT][FONT=&quot]M[/FONT][FONT=&quot]I[/FONT][FONT=&quot]S to be paid directly into the mortgage account of the borrower[/FONT]


[FONT=&quot]•[/FONT][FONT=&quot]Th[/FONT][FONT=&quot]e scheme should remain as, insofar as is possible, a short term income support[/FONT]


[FONT=&quot]•[/FONT][FONT=&quot]W[/FONT][FONT=&quot]he[/FONT][FONT=&quot]r[/FONT][FONT=&quot]e a borrower’s situation is or becomes unsustainable, they should be facilitated, if necessary, in applying for social housing appropriate to their needs.[/FONT]

 

[Brendan Burgess]

I think that these are exactly the same as the recommendations of the Expert Group on Mortgage Arrears. As I understand it, these are all government policy and the Department is preparing the necessary legal changes to implement these recommendations.

The possible exception is

[FONT="]•[/FONT][FONT="]E[/FONT][FONT="]nsu[/FONT][FONT="]r[/FONT][FONT="]e that MIS does not cease without the long term housing needs of recipients being met.[/FONT]

This would be unworkable. There are some single people in three bed houses who wouldn't qualify for MIS but get it for a few months to tide them over. Their long term housing needs will never be met as priority is given to parents.

 

[Sammish]

We get 14.40 per month help and thats on an almost 900 euro mortgage!!!!