A report by the – cough – Department of Finance published this morning rules out any blanket debt or negative equity forgiveness programme to solve the mortgage crisis. That would upset the bankers too much. And we can’t have that.
The possible solutions that will need to be advanced [according to the report] by banks to address mortgage over indebtedness include trade down mortgages, split mortgages and sale by agreement.
Associated with this, the group also proposes the mortgage interest supplement scheme should become time limited.
The report proposes a more specialised mortgage advice service be established, that could link into Mabs, to provide specialist advice and assistance to mortgage holders in difficulty to enable them consider and evaluate their options in their engagement with mortgage lenders.
Underpinning the range of possible solutions, the report also states reform of the bankruptcy and personal insolvency law is fundamental and that without this the mortgage problem will not be resolved.
Minister for State with responsibility for housing Willie Penrose is to unveil two mortgage-to-rent schemes…Under each scheme, households in extreme mortgage distress who are eligible for social housing will be able to remain in their homes as social housing tenants with either the lending institution or a housing association taking ownership of the property. Mr Penrose’ officials will be kick-starting this process next week.