Ritchie welcomes fairer system for courts tackling mortgage arrears

Social Development Minister Margaret Ritchie today welcomed the fact that lenders seeking to repossess homes, should view it as a measure of last resort.

If a lending institution seeks to repossess a property it does so through a Court Order. However, the Courts have introduced new protocols, to ensure the lender engages more with the borrower to seek agreement, before the Courts will consider issuing a repossession order.

Margaret Ritchie said: “These new protocols are a much needed boost for those people who at present get into mortgage difficulties and then suffer the shock of a repossession order landing on their doormat. The Courts should be very much a last resort for lenders to seek repossession and I welcome that this will now take place.

“Helping those in genuine mortgage debt is a priority for me. That is why I have increased significantly the money available for Housing Rights Service to ensure they have advisers who specialise in helping those in mortgage debt. These Protocols introduced by the Courts will provide further assistance.”

Notes for editors

1. For the last financial year the DSD has provided £672,878 core funding to Housing Rights Service towards the delivery of their core objectives which includes the provision of comprehensive advice for those individuals and families in housing need.
2. The Mortgage Rescue Advice and Debt Service was launched on 20 May 2009 which directed households to take and act on financial advice to help alleviate their debt problems.
3. Other initiatives to help those struggling with mortgage payments include:
   • Support for Mortgage Interest – introduced in January this year, this entitles homeowners on Income Support, income-based Jobseeker’s Allowance, or income-related Employment and Support allowance, to support on mortgage interest payments after 13 weeks.
   • Homeowners Mortgage Support which was announced last month is a UK wide Government backed initiative. This Government guarantee scheme is appropriate for home owners who have encountered a short term reduction in income which impacts on their ability to meet their mortgage payments. It will enable homeowners to defer a proportion of their mortgage interest payments for a maximum period of up to two years. The main banks will determine eligibility in accordance with the criteria set by the Government. Potential applicants should approach their lender to see if they qualify.
4. Housing Rights Service can be contacted on 028 9024 5640. Although based in Belfast it provides advice throughout Northern Ireland Monday - Friday 9.30am - 5.00pm. In addition full details of the services it provides can be found on their website at www.housingrights.org.uk
5. Alternatively those seeking advice may which to contact /consult their local Citizens Advice Bureau or Advice NI office. Details can be found in the phone book.
6. Media enquiries to Philip Maguire DSD Information Office on 028 9082 9079 or 07788 108657. Out of office hours please contact Duty Press Officer via pager number 07699 715 440 and your call will be returned.