COMHAIRLE CONTAE ÁTHA CLIATH THEAS
SOUTH DUBLIN COUNTY COUNCIL

south dublin county council crest

MEETING OF SOUTH DUBLIN COUNTY COUNCIL

Monday, February 14, 2011

QUESTION NO 5.

QUESTION: Councillor C. Jones

To ask the Manager to report on increases in the number of householders who are in receipt of mortgage assistance from the Council owing to low income?

REPLY:

The Council is very aware of the growing number of borrowers in arrears with their mortgages because of the economic downturn and in some cases the loss of employment. Where the mortgage is with a lender other than the Council the Council does not provide mortgage assistance. In these circumstances they may apply for Supplementary Welfare Mortgage Interest Supplement to their local Community Welfare Service.

For borrowers with outside Financial Institutions they must be treated in accordance with the Code of Conduct on Mortgage Arrears recently published by the Central Bank of Ireland which outlines the framework for dealing with borrowers in arrears. The framework is effective from the 1st January 2011 and sets out in great detail the processes to be applied to arrears cases on issues like the provision of information, Mortgage Arrears Resolution Process (MARP), Communications, Financial Information, Assessment, Resolution, Appeals and Repossessions.

In cases involving borrowings from the Council a proactive approach is taken in working with the borrowers on a personal basis on arrangements to be put in place to manage the financial difficulties they face and the arrears that have arisen. This approach is fully compliant with the most recent directives issued by the Department of Environment, Heritage and Local Government.

The Council can reduce a local authority borrower’s repayment (subject to the necessary criteria being met) by either applying a subsidy to the account or by charging only interest and a mortgage protection payment to the account for the duration of the borrower’s financial difficulties.

The table below shows the number of borrowers who were facilitated by the Council with regard to their mortgage arrears at January 2010 and January 2011:

  Jan-10 Jan-11
No. of Accounts on a mortgage/rent subsidy 102 109
No. of Accounts on an Interest and Mortgage Protection only instalment 2 14

The Council also advises borrowers to seek the assistance of the Money Advice and Budgeting Service.