12.9% of mortgages on principal dwellings in default
Responding to the news that AIB Bank and others are entering into arrangements to write down mortgages with some hard pressed borrowers, Senator Rónán Mullen, Independent Euro candidate, said it was a welcome development but called for transparency in how such arrangements would be agreed.
Senator Mullen said:
“Given the fact that most Irish banks only continue to exist because the Irish taxpayer was forced to bail them out, it is appropriate that they would now be open to entering into arrangements with those who are struggling to meet their monthly mortgage payments”
“It is shocking that one in eight mortgages holders across the country are in default of their home loan, namely in arrears for three months or more. This creates a huge level of pressure on families across Ireland as well as having wider implications for the economy. Any willingness from the banks to enter into agreements with people in these very troubling situations is welcome.
“While individual agreements entered into between mortgage holders and their bank must of course be confidential, it is important that the criteria for such arrangements should be transparent and accessible to all. Certainly such agreements shouldn’t depend on the quality of a person’s mortgage advisor or their relationship with their banker”
“It is the ordinary families of Ireland who have borne the brunt of the economic downturn. It would be an injustice if such families didn’t have an equal chance to benefit from these bank arrangements.”
Senator Mullen called on the Government to ensure that guidelines in put in place so that fairness is achieved. He concluded that it is important that people don’t ignore mounting debt problems but seek help at the earliest opportunity.