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Mortgage and Personal Debt is a large scale and complex problem, that requires a co-ordinated and joined up solution. I have said before that I am frustrated at how long it is taking to find solutions.

But progress is being made and we are working on a number of fronts at once and solutions are being developed.

YOUR LOCAL LABOUR TEAM WORKING FOR YOU

"There is no quick fix. There is no blanket debt forgiveness. We are putting in place options for people who can't pay their mortgages, not for those who won't pay. This is not a magic wand. But it is an important process on the path to finding solutions for this major social and economic problem."

Senator

Denis Landy

Senator Denis Landy 12 New Street, Carrick-on-Suir, Co. Tipperary

Eamon Gilmore, TĂĄnaiste Leader of the Labour Party, 26 June 2012

Phone: 051 641641 Seanad Office: 01 618 3000 Mobile: 087 2326138 Email: denis.landy@oir.ie

If you are experiencing difficulties please contact: Money Advice and Budgetary Services (MABS) Phone: 0761072000 Web: www.mabs.ie Citizens’ Information Services Phone: 0761 07 9000 Web: www.citizensinformation.ie New Beginning Phone: 01 8719499 Web: www.newbeginning.ie Advice and support services for mortgage holders in difficulties: An enhanced website www.keepingyourhome.ie offering dedicated information and initial advice to distressed mortgage holders.

Cllr. Seanie Lonergan Garryroan, Cahir, Co. Tipperary Mobile: 086 3913639 Email: lablon@eircom.net

Please feel free to contact me on this or any other issue.

Denis Landy @LandyDenis 0612

LABOUR DELIVERING ON MORTGAGE & PERSONAL DEBT REFORM

“This is about giving people a fair deal and a fresh start in dealing with their debts.”

Eamon Gilmore TD

Labour regards the issue of mortgage arrears as one of the most pressing economic, social and human problems facing our people.

Behind the statistics are tens of thousands of human stories- of people suffering in many different ways. From those who are afraid that they may lose their homes, to those who are put to the pin of their collar every month to pay the mortgage. Labour in Government is determined to do everything we can to assist people in distress, and let them get on with their lives.

Progress made to date:

✓ ✓ ✓ ✓ ✓ ✓ ✓

Personal Insolvency Bill

Mortgage Interest Relief

The Government has published its radical reform of bankruptcy laws as promised - the Personal Insolvency Bill. This ground-breaking piece of legislation will bring about a fundamental change in personal insolvency law. It will reform the existing laws on bankruptcy and bring in new forms of legal protection for people who are in debt, short of full bankruptcy.

Mortgage interest relief has been increased to:

This legislation will put pressure on the banks to negotiate with borrowers in a meaningful way. It will address the imbalance that has existed between the banks and the borrower, providing greater strength to the borrower. The legislation creates a stimulus for the banks to engage with customers in a meaningful way by coming up with a process that is mutually acceptable.

New Negative Equity Mortgages

Mortgage-to-rent scheme

■ Must meet certain conditions including the sale of the original property and carry over only limited amount of negative equity

Labour’s Housing Minister Jan O’Sullivan has launched a new mortgage-to-rent scheme on a nationwide basis. The family involved will rent their home from the housing body Cluid rather than face the trauma of repossession and the upheaval and financial costs arising from securing alternative accommodation.

New mortgage-to-rent scheme for those whose mortgage is completely unsustainable.

■ The lender has written off a significant portion of the debt of the original loan

Personal Insolvency Bill to help those at risk of bankruptcy and in considerable debt

■ The Department of the Environment has provided 25% of the equity for the new loan

■ 30% for those who bought their homes at the height of the boom 2004-2008 ■ 25% for first time buyers who purchase in 2012 ■ 15% for non-first-time buyers who purchase in 2012

Permanent TSB and Bank of Ireland are providing new negative equity mortgages, following approval from the Central Bank. Homeowners in negative equity: ■ Can tack on their negative equity to a new mortgage, freeing them to accommodate their families or move closer to work

More than half of mortgage holders are in negative equity. Many could afford to service a different mortgage.

These new mortgages would free homeowners rather than stay stuck in unsuitable accommodation with debt greater than the current value of the property.

Keane Report on Mortgage Arrears

Mortgage Interest Relief for home owners from the boom and new buyers Keane Report on Mortgage Arrears

Already the Government has published the Keane Report (2011), the tenor of which reflected those made in Labour’s manifesto. Possible solutions set out in the Report include: ■ Trade down mortgages ■ Split mortgages

New Negative Equity Mortgages

■ Sale by agreement

Sub-Cabinet Committee on Mortgage Arrears set up, attended by Taoiseach, Tánaiste and key Ministers

A Steering Group, chaired by a senior official in the Department of Finance, has been established to oversee and drive the overall implementation of the Keane Report.

Advice and support services www.keepingyourhome.ie