There is good news for under pressure mortgage holders in Budget 2010 according to Deputy John McGuinness.
Deputy McGuinness said that over 40 per cent of homes have a mortgage on them nationally and The Minister for Finance has indicated that he has requested that the Financial Regulator examine the six month moratorium on legal proceedings already in the code of conduct in mortgage arrears to twelve months for all lenders.
“The budget also protects those mortgage holders who are in negative equity where their entitlement to mortgage relief is due to expire in 2010 they will now continue to receive it up to the end of 2017,” said Deputy McGuinness.
“Qualifying mortgage loans taken out before July 1, 2011 will continue to get relief for seven years (up to 2017 ) in order to encourage those who might be thinking of purchasing their first home. Transitional measures will be provided for qualifying loans taken out between July 1st 2011 and the end of 2013. This will help to stimulate the housing market.
“As financial circumstances have changed with pay cuts and job losses many young families in particular have found themselves under pressure repaying their mortgages.”
“While only 20 homes have been repossessed by institutions covered by the Government Guarantee Scheme, the worry as people get into financial difficulties is often difficult to bear.”
“I was encouraged by the recent Irish Banking Federation ‘Statement of Intent’ which allows those mortgage holders to who come to an agreement with their lender to avoid legal action.”
“I know that many families rely on their mortgage interest relief so this measure will be welcome,” concluded Deputy McGuinness
