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Where’s the bailout for mortgage holders? - Doherty

4 February, 2011 - by Pearse Doherty TD

Following the announcement by Permanent TSB that it is increasing interest rates on fixed rate mortgages by 1%, Sinn Féin TD and Spokesperson on Finance Pearse Doherty  has contrasted the pressure on home owners with the bailout for banks.

 An increase of 1% on a €150,000 mortgage will mean that homeowners have to pay an extra €97.40 per month.

The past year has seen a steady rise in the numbers of households in mortgage arrears which now stands at over 40,000 amounting to almost  €8 billion.

Doherty said:

 “The current economic downturn exacerbated by the austerity policies of the FF/Green government which are promised to be continued by FG and Labour, has driven many families into mortgage difficulties.

“Given that many mortgages were given out at a time of inflated house prices and bad lending practises, and given the massive bail out for the banks, a radical new approach needs to be taken to mortgages.

“Given that a huge number of people are paying mortgages on homes that have fallen well below the value which they were when they bought them, options such as partial debt forgiveness and a re evaluation of mortgages for those who can not afford to pay them in full need to be looked at as one of the ways to address this growing problem.” ENDS

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