Help for homeowners in mortgage arrears

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East Galway TD Paul Connaughton has welcomed new moves to support mortgage holders in arrears and said that the initiative will help many households in county Galway.
‘The Government has agreed to a major reform of the personal insolvency framework, which will allow the courts to review and where appropriate, approve insolvency deals that have been rejected by the banks. The legislation needed to bring this into effect will be presented to the Dáil before the summer.
‘For too long, banks held the upper hand in terms of dealing with those in mortgage arrears, but the opportunity to have the matter dealt with in court will hopefully prompt the banks into much greater co-operation with home owners who are struggling to work through their financial difficulties and retain their family home.
‘It is also planned to expand the mortgage to rent scheme, including increasing the property value threshold and this should make the scheme more flexible and accessible.
‘I very much welcome plans to expand the role of the Money Advice and Budgeting Service in terms of offering information, advice and assistance to mortgage holders and borrowers in arrears. MABS have done tremendous work in recent years in very difficult circumstances and increased co-operation between MABS and the Insolvency Service of Ireland is welcome.
‘The combined effect of these moves is to strengthen the range of options open to mortgage holders and borrowers in arrears and ensure greater oversight in terms of insolvency arrangements. Mortgage holders in arrears also need good support and advice and the enhanced role of MABS is very important in that respect.’