The Government has announced moves that will prevent any lender applying penalty interest to anyone in arrears on their mortgages once they enter a resolution process.
All banks will have to set up a mortgage arrears process which the Government says will ensure consistent treatment of people in difficulty.
It is estimated that 30,000 people are in arrears of more than 90 days with as many more in negotiation with their bank seeking ‘forebearance’.
Finance Minister Brian Lenihan says no-one should now be afraid to talk to their banks and that this is just the beginning of action by Government.
“I entirely refute the suggestion of ‘too little too late’ – the government already secured a substantial moratorium, an extension of time, for borrowers who have difficulties with capitalised banks” he said.
“This is an interim report; as soon as the report arrived on my desk the government decided to implement all of the recommendations”.
“The Regulator will be making a statement today”.
“A further report will take place in the Autumn and the government will act on those recommendations as well” he added.
