Important not to delay changes to mortgage interest supplement scheme

Ireland’s leading housing charity welcomes the publication of the Review of the Mortgage Interest Supplement Scheme by the Department of Social Protection but calls for swift action on the report. Respond! Housing Association contends that changes to the scheme are urgently required and says many of the recommendations need to be implemented immediately. The housing charity maintains that with more than 32,000 homeowners in arrears and only 16,700 homeowners receiving the monthly payment, the supplement is currently not accessible by all those who need it.

According to Respond! spokesperson Aoife Walsh, many of the recommendations outlined in the report need to be implemented without delay in order to offer genuine support to those struggling to repay their mortgage.
“It is now clear from this review that many of the eligibilty criteria used to assess applicants are too strict and narrow. Amending some of these conditions and other aspects of the scheme is critical in order to offer some form of relief to those suffering financial hardship.We have been awaiting this review for nearly 12 months now so it is essential that the Minister and the Department of Social Protection does not delay in applying these changes. ”

Respond! maintains that a draft timeline outlining the implementation of the report is required immediately. The need for a financial support for those in arrears, or at risk of arrears, is bigger than ever says the housing charity. The number of homeowners accessing the scheme has increased by almost 270% since 2007 with the scheme estimated to cost in the region of €64 million this year.

According to Walsh, more effective data collection of the reasons why so many are being refused the scheme is also required.
“About one third of all applicants are being refused the supplement and it is important that we know why. With unemployment still rising and the number in arrears increasing on a monthly basis, this scheme is now more important than ever. It needs to be delivered consistently throughout the country in a manner which affords homeowners a very real opportunity of receiving assistance” added Walsh. “While the Minister maintains that the proposals contained in the review are internded to be revenue neutral, this may not be realistic. With so many homeowners struggling to repay the mortgage, Respond! believes the cost of the scheme will increase in the coming months and years.”