This should be welcomed. The current situation of having to wait for a repossession order is often frightening for the people involved. At least with this new measure a person will be sure of where they are going to live after losing their home.[FONT="]Social Housing[/FONT]
• [FONT="]The Department of the Environment, Heritage and Local Government should[/FONT]
[FONT="] swiftly implement new regulations (currently being developed) which will[/FONT]
[FONT="] enable borrowers whose mortgage has been deemed unsustainable, to become[/FONT]
[FONT="] eligible for social housing assessment before a repossession order has been[/FONT]
[FONT="] made or repossession has actually taken place.[/FONT]
• [FONT="]The Group recommends that a mechanism be put in place which would enable,[/FONT]
[FONT="] where appropriate, the borrower and lender agree to a voluntary repossession,[/FONT]
[FONT="] with actual repossession deferred for a specified maximum period or until such[/FONT]
[FONT="] time as the housing authority has sourced appropriate accommodation,[/FONT]
[FONT="] whichever comes sooner.[/FONT]
Are there any recommendations for people who are in negative equity, who want to move house and can afford to, but who can't because they are not allowed to sell their first home? I am referring to, for example, people in NE with very good salaries who might be stuck in an apartment, but want to start a family. I can't see any reommendations in this report to help them.
How does one in a position where one feels they might avail of parts of this new legislation actually avail of it? I'm particularly interest in the following point of the report...
"A Deferred Interest Scheme should be introduced for borrowers who can pay at least 66% of the interest. This would give borrowers up to 5 years to get back on their feet."
I'm a customer of a bank that is adopting the scheme. I'd like to push back part of my interest payments for a period of time, e.g 3 or 5 years.
Do I approach the bank quoting the report and ask them to reforecast my mortgage based on possible new terms as allowed by them following the report?
Many thanks.
The scheme does not give borrowers a general right to reduce their mortgage payments to 66% of the interest. It is only for those who cannot make the full interest payments - it's not for those who would prefer not to make the full repayment.Features of a Deferred Interest Scheme (DIS)
4.4.2 In summary, the scheme would work as follows:
1.
DIS is made available to borrowers who cannot afford to pay the full interest on their mortgage and who meet the eligibility criteria set out in 4.4.3.
2.
The borrower should pay as much interest as they can afford but as a minimum they must pay 66%. The amount which the borrower could afford to pay would be determined via the MARP and Standard Financial Statement (SFS).
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