FG proposals on mortgage rates are increasing the pain
Issued : Saturday 5 February, 2011
Areas : Cork North West
Cllr. Martin Coughlan has criticized Fine Gael of ‘acting before thinking’ after experts have slammed their plans to cut mortgage interest rate repayments by 0.25pc within 100 days of Government.
Cllr. Coughlan pointed to comments by Frank Conway of Irish Mortgage Corporation, who said the banks would render Fine Gael's election pledge meaningless by increasing their variable rates in advance of them taking office, and that banks who had not announced increases before will do so now to pre-empt FG’s plan.
Cllr. Coughlan said Labour has consistently argued for a 24-month moratorium from the time that mortgages first go into arrears, before repossession proceedings can be taken, where a borrower makes reasonable efforts to meet their obligations to pay the mortgage on a principal private residence.
To facilitate this, Labour in Government plan to introduce legislation to establish a Personal Debt Management Agency to provide impartial advice to those in arrears, conduct independent assessments of the distressed borrowers’ repayment capacity, and negotiate mortgage and personal debt repayment plans between distressed borrowers and credit institutions.
Labour will introduce far-reaching reforms to the Mortgage Interest Supplement scheme so that, in certain cases, those in full time employment will qualify for some support.
Labour candidate for Cork North West, Cllr. Martin Coughlan, said:
“Fine Gael haven’t even gotten to polling day and their policies are hurting the ordinary working people. In places like Ballincollig where there are a lot of new houses and families, the fear of being unable to meet repayments dominates the doorsteps.
There are over 46,000 people in this state in arrears, and over 15,000 mortgage holders have been forced to rely on support from the Mortgage Interest Relief Scheme in 2010.
Fine Gael have not stated how they will pay for their €120m election promise of providing mortgage relief for people trapped in negative equity, yet have the neck to try and talk down Labour Party proposals. This is yet another example of Fine Gael creating an economic policy that hasn’t stood up to scrutiny.
Fine Gael’s policy proposal instead has only incited the banks to consider hiking their rates up even further in advance of FG being elected to the Dáil, despite families being crucified by banks who are intending on raising rates by 0.5pc to 1pc.”
Cllr 
