Fine Gael Councillor, Michael Murphy, has welcomed an announcement that a new €20 million fund is being established to help distressed local authority mortgage holders.
It will be used to offer the ‘mortgage-to-rent’ solution to local authority mortgage holders who are unable to meet their monthly repayments.
“Almost one third of local authority mortgage holders are in arrears for 90 days or more, so clearly this sector is in need of some attention in terms of dealing with mortgage difficulties. I am pleased that the Minister for Housing, Jan O’Sullivan, has announced this new €20 million fund, which will be used to specifically offer the mortgage-to-rent option for those worst affected.
“This will allow families to stay in their home. Thanks to this new fund, mortgage holders will effectively become tenants of the local authority; nothing else will change. They will stay in their family home and rather than paying a mortgage they will pay a smaller monthly rent to the local authority. While giving up ownership of a home is never an easy decision, this option will provide families with certainty and security.
“It is really important for any local authority mortgage holder having problems servicing their mortgage to engage early with the Arrears Support Unit of their local authority, which can help put the right solution in place.
“The mortgage-to-rent option is just one solution open to distressed mortgage holders, and Minister O’Sullivan has said that she will bring forward other options in relation to those with shared ownership loans. In the meantime, I hope that as many people as possible avail of this EUR20 million fund if they are having difficulties servicing their local authority mortgage,” concluded Cllr Murphy,