Govt Extends Abhaile Mortgage Scheme

A scheme that helps those in mortgage arrears has been extended for another three years with €24.7 million of funding, the Government has said.

Charlie Flanagan and Regina Doherty, the Ministers for Justice and Equality and Employment Affairs and Social Protection, committed to extending the project with plans in place to target those yet to engage.

Set up in 2016, Abhaile has so far provided financial advice and negotiation support to over 12,000 households at risk of losing their homes.

The two Departments expect that the cost of the demand led scheme over the next three years will amount to €17.27m, while a further €7.5 million will fund the extension of the connected Dedicated Mortgage Arrears service within MABS.

Home mortgage arrears have fallen sharply and continue to fall, but the cohort in long term arrears remains significant - at just under 28,000 mortgage accounts, i.e. an estimated 22,000 mortgaged homes. It is hoped that extending Abhaile will enable it to reach the rest of the owners of those homes.

The range of solutions available to help borrowers advised under Abhaile is also growing. This follows recent personal insolvency court review judgments, and the expansion of the Government's Mortgage to Rent scheme.

Making the point that it has been much in demand and has achieved major reach, Minister Flanagan said: "This is a scheme which has helped many already and which we intend will continue, and help many more over the next three years. It is a scheme which is working. To date 82% of those advised are either on the road to getting a solution, or already have one in place. Accordingly, we were delighted to get the backing of our Cabinet colleagues today for this extension."

Minister Doherty added: "Abhaile is often the first point of contact for distressed mortgage holders, and it provides successful solutions - helping to put in place personal insolvency arrangements, alternative repayment plans, or other arrangements such as Mortgage to Rent, that are tailored to the borrower's individual situation, and are realistic, sustainable and fair, both to borrowers and to creditors. Of those who have engaged with us, the vast majority have managed to stay in their homes, so I would encourage anybody who is in difficulty to take the first step and call the Money Advice and Budgeting Service."



(JG/CM)