Clarity needed on debt forgiveness for Cavan mortgage holders

Irish banks were today urged to clarify their policy on debt forgiveness and inform people on what basis deals are being agreed with mortgage holders.

The call came from Labour European candidate Lorraine Higgins, who said the way banks were treating mortgage holders is 'unforgiveable', and has vowed to raise it with the Minister for Finance, Michael Noonan.

“The lack of clarity on how banks are engaging with those in debt is creating a level of distress for mortgage holders across Cavan that is unforgiveable. Not only have banking institutions chased people in mortgage arrears for a number of years but now there is no clear picture on what basis debt forgiveness will be considered.

“It is welcome that individual banks are at least seeking solutions with mortgage holders but the policy seems to differ from bank to bank. Banks are also bringing forward policies to allow customers keep their current tracker-mortgage while moving to a new home but this is being done on an ad-hoc basis.
'We need more information on the proposed solutions by Irish banks if we are going to seriously tackle the long-term mortgage arrears problem. Families continue to be trapped with crippling legacy debt or in homes still in negative equity and we now need now to develop viable solutions that allow people move beyond these issues.

“I will be raising this matter in the Seanad and intend to ask the Minister for Finance for clarity on the situation for hard-pressed home owners.”