People need a working service - Mortgage arrears

A REVIEW is to be carried out by the Central Bank of targets set for banks to deal with mortgage arrears. It is expected the outcome will be concluded by the end of next month.

This follows an initiative being driven by the Taoiseach’s department to step up measures to reduce the number of people who are in long-term difficulties with home loans.

Despite an improving and growing economy and an increasing reduction in the numbers of those without jobs, there are still 37,000 mortgage accounts two years or more behind on repayments. While some won’t pay, most can’t pay.

What is to become of those householders, many of whom are stuck in negative equity? What are their options?

Despite the advent of the Insolvency Service of Ireland and long-needed changes to our bankruptcy laws, many thousands of homeowners face years – perhaps decades – in debt.

Last week Taoiseach Enda Kenny met the Insolvency Service to discuss the issue. He has recognised that there is a problem with the service but he appears to think that this is simply a communications problem. He has instructed the Department of Justice to review the service in the light of concerns that there is a lack of public awareness of it.

But, Taoiseach, that is only the half of it. You need to light a bonfire under the service as it is simply not working for those for whom it was designed to help.