Householders relying on mortgage interest supplement shoot up 130%

The number of Meath families in need of help to hold onto their homes is truly shocking, according to Senator Dominic Hannigan. The Labour Party senator said that. in the last 11 months, the number of Meath residents in receipt of mortgage interest supplement has shot up by almost 130 per cent. “The huge toll the recession is taking on families and individuals is clear. At the end of 2007, before the downturn took hold, there were 167 recipients of mortgage interest supplement in Meath. That figure now stands at 1,297. That is an astounding 676 per cent increase in less than three years,†he said. Senator Hannigan said there appears to be a time lag between people losing jobs and falling into arrears with home repayments. “Unemployment may have stabilised at a high of over 13 per cent, but my fear is that, as we move into the New Year, many more families will find themselves facing mortgage difficulties. People who have lost jobs tend to use redundancy money and savings to keep up the payments on their homes. It is only when this money runs out that serious arrears problems begin,†he added. He stressed the importance of providing support mechanisms for home owners in trouble. “The rules on mortgage interest supplement are complex, but I would encourage people in difficulty, who feel they may be eligible, to contact their community welfare officer,†he added. Senator Hannigan said people with mortgage difficulties needed to be frank in their dealings with their bank or building society. “Financial institutions are now required to exercise forbearance. This means borrowers can renegotiate the terms of their loans. In essence, forbearance means a lender will agree not to seek repossession of a home as long as the borrower continues to made lower repayments,†he explained.