MORTGAGE RATE INCREASE WILL LEAD TO MORE FAMILIES IN ARREARS
Issued : Friday 21 January, 2011
MORTGAGE RATE INCREASE WILL LEAD TOMORE FAMILIES IN ARREARS
“The suggestion in recent days of a further increase in mortage interest rateis driving fear in the hearts of many families across this constituency, someof which are barely hanging on by their fingernails at present” claimed MarieMoloney, Labour Party Candidate for the forthcoming general election.
An interest increase would not just affect those currently in difficulty and whohave lost their jobs, but also many in employment both in the private and publicsector who have seen significant reductions in their salaries again this month andwho are already under financial difficulty in meeting their monthly payments.
“This Fianna Fail government has no problem dancing to the tune of the bankswhen they are in crisis, but when ordinary people are facing difficulty in makingmortgage repayments, the response is pathetic” said Councillor Moloney.
Families are now desperately looking for solutions, but this Government is failingthem.
“I have been meeting people at the doors who have been telling me they livewith constant fear and worry about whether or not they will be able to meet theirmortgage repayment and if they will be able to keep a roof over their heads” saidCllr Moloney
“The ordinary people living across the length and breadth of this constituencyare are being forced to pay back on loans to bailout banks who participated inreckless lending and all the while these hardworking people are struggling tomeet their own loans”
Labour in Government will seek to put in place a range of radical proposals thatwill provide some relief and which will reduce the chances of people ending upin serious arrears, and the Party will be publishing details in this regard in thecoming weeks.
Among our proposals is a plan to introduce legislation to establish a PersonalDebt Management Agency to provide impartial advice to those in arrears,conduct independent assessments of the distressed borrowers’ repaymentcapacity, and negotiate mortgage and personal debt repayment plans betweendistressed borrowers and credit institutions.
We will also introduce legislation to underpin the Financial Regulators' (2010)Code of Conduct on Mortgage for arrears and repossession, and will introducefar-reaching reforms to Mortgage Interest Supplement scheme, so that in certaincases, those in full time employment will qualify for some support.
