THE GOVERNMENT will “be supportive” of recommendations expected shortly from an expert group which is likely to propose that all mortgage lenders, including subprime companies, follow standard rules when dealing with people struggling to meet repayments, Taoiseach Brian Cowen said yesterday.
However, he cautioned against hopes that the State could help to pay part of the bills.
The group, headed by insolvency expert Hugh Cooney, is expected to recommend that lenders offer troubled mortgage-holders the chance to extend the length of their mortgage, let them pay interest only for a time, or allow them a payments break to give them time to get their finances back on track.
After a meeting of the British-Irish Council in Guernsey, Mr Cowen said: “The Government, I believe, will be supportive of the recommendations that will come . . .Whatever happens will have to be done after very careful consideration.”
He said he would not offer solutions before studying Mr Cooney’s findings as that could “have the possible impact of raising expectations on the one hand that every possible problem can be solved, while forgoing the forbearance of those who are conscientiously meeting their commitments”.
“We are mindful of the fact that there are very many hard-pressed families out there who are meeting their commitments, despite the difficulties. One has to ensure that whatever emerges deals in a targeted way with those who are in payment difficulty, whilst ensuring that those who are conscientiously ensuring that they meet their commitments presently are not felt at a disadvantage for doing so.”
Free Legal Advice Centres (Flac) backed International Monetary Fund (IMF) calls to banks to help homeowners in Ireland struggling with mortgage arrears.
“In proposing support for vulnerable homeowners as a priority, the IMF is simply recognising that a serious problem exists and must be addressed in solving the overall economic crisis of the country,” Flac’s Noeline Blackwell said. “The Law Reform Commission has also identified the need for reform in this area.”
Labour finance spokeswoman Joan Burton said the IMF’s comments were welcome: “With unemployment at record levels, incomes under pressure, and negative equity the new reality for many, people are simply terrified of losing the roof over their heads.”