Begin Homeowner Support, Urges FG

Immediate implementation of Fine Gael's home owner support scheme would support thousands of Irish families facing mortgage problems, the opposition party has claimed.

Front bench spokesman Denis Naughten quoted figures from housing charity Respond, which estimate some 25,000 families are facing repossession of their home.

He said the reports suggest at least 1,000 families a month are seeking State assistance for their mortgage repayments.

But according to Mr Naughten, a large numbers of homeowners are not qualifying for Government assistance.

The TD said he welcomed the Irish Banking Federation move to give homeowners more time to address mortgage arrears.


"But the extended moratorium announced by the major lenders is unlikely to have a significant impact on homeowners with subprime mortgages, the sector with the highest risk.

"Fine Gael’s home-owner support scheme should therefore be implemented as a priority."

Mr Naughten claimed the scheme would help to avert widespread repossessions across the country.

"Under the scheme, NAMA would take an equity share in a property, after it had negotiated a write down in the outstanding debt with the lender.

"The homeowner would then manage the remainder of the debt, while paying a rental fee to NAMA. In the long-term, the owner would be able to buy back NAMA’s share of the property."

He said the "lethal combination" of negative equity, widespread unemployment and the deep recession have already afflicted thousands of homeowners:

"The situation is likely to get far worse when interest rates rise again, and interest payments shoot up. That’s why Fine Gael’s scheme must be implemented as soon as possible," added the TD.

(PR/BMcC)