18,200 get help to meet mortgage repayments

MORE than 18,200 struggling mortgage holders are receiving an emergency short-term payment from the Department of Social Protection to help with mortgage repayments.

So far this year the scheme’s cost is just over €21 million and the estimated total cost for 2011 is €77.2m.

The purpose of the Mortgage Interest Supplement scheme (MIS) is to provide short-term income support to eligible people who are unable to meet their mortgage interest repayments. The supplement assists with the interest portion of the mortgage repayments only and is administered by community welfare officers under the supplementary welfare allowance scheme.

The scheme has been the subject of controversy because of a rule which says it is generally not payable where a person or their spouse is working 30 hours or more per week.

Last year it was revealed in this newspaper that the numbers applying for help far surpassed the numbers getting the payment.

However, the numbers in receipt of MIS have increased significantly in recent years, up 350% since the end of 2007.

In 2008 there were just over 8,000 receiving the payment — this jumped to 15,101 in 2009 and has continued to rise.

In July 2010 the department published a review of the scheme. Among its key recommendations were that MIS should become a time-bound payment, The ‘30 hour rule’ should be abolished and successful applicants must be assisted to ensure that their long-term housing support needs, if any, are met prior to the cessation of mortgage interest supplement payment. These have not yet been implemented.

The department says it is developing an implementation plan incorporating the recommendations from the review along with those from the reports from the Mortgage Arrears and Personal Debt Review Group.

The department said the latest memorandum of understanding with the EU/IMF does not directly impact upon the commitment in relation to the 30-hour rule.