Local authority or charity to take over home if owner can't pay mortgage in new measures approved by government
THE Cabinet has agreed a series of measures in a bid to keep people who are in mortgage arrears in their homes.
Details of the measures, released this afternoon, include legislative changes to allow the courts to review and overturn insolvency deals that have been rejected by the banks, but are seen as reasonable by a judge.
Insolvency deals already have to be approved by the circuit courts.
The new change will weaken the much-criticised veto given to banks when the new Insolvency Service was set up.
Read more here: Cabinet to sign off on mortgage arrears plan as banks snub deals
Following a special Cabinet meeting today, it was also agreed to expand the mortgage-to-rent scheme, to allow more families to qualify.
This sees a local authority or a charity take over a home when someone can no longer meet the mortgage payments. They pay rent instead.
The State’s Money Advice and Budgeting Service (MABS) is to be given a greater role in offering information, advice and assistance to borrowers in arrears.
Additional services to provide assistance in identifying the best options, completing financial statements and considering proposed solutions will be rolled out by MABS offices on a phased basis, following a process of engagement with the Citizens Information Board and MABS.
Minister for Finance, Michael Noonan, said: “The Government is committed to helping people in arrears to reach sustainable solutions and engagement between lenders and mortgage holders has resulted in 115,000 solutions.”
“The major reforms agreed at today’s Cabinet meeting are designed to help more people to access the supports, options and solutions available and, in particular to support mortgage holders in long term arrears. I am confident that the new powers available to the Courts will help to underpin the credibility of the Insolvency Service and encourage more deals to be reached”.