Mortgage holders denied relief by Government decision - Stanley
Local Sinn Féin TD Brian Stanley has described the Government decision to vote down a Sinn Fein proposal to provide modest interest relief for mortgage holders as "disappointing".
The latest news from the European Central Bank is that there will be three more increases on mortgages this year, he claimed.
"Yet Government TDs voted against any relief for hard pressed house holders,’’ the TD added.
Addressing the Minister for Finance in the Dáil he said: “Mortgage holders across the country are seriously struggling at the moment. I have received many complaints, as I am sure others have, from mortgage holders in Laois-Offaly.
"Some households are paying interest rates to vulture funds of 7% and 8%, with repayments rising by thousands of euros per year. This is happening at the same time as the banks are making huge, record profits, but offering almost 0% interest on deposits. Banks are not passing on any share of their profits to ordinary people and mortgage holders. Instead, they are increasing interest rates on mortgages to breaking point.
"We are in the middle of a cost-of-living crisis. We do not need to be reminded of this, but I will say it. It is in the context of sharp increases in the cost of energy, transport, food and so on that we are putting forward a modest measure.
"Sinn Féin is calling for a targeted, temporary mortgage interest relief scheme. We had mortgage interest relief in the past. It was open-ended. Indeed, the Minister called for it to be reintroduced in the past.
"What we are calling for is a modest measure. It is a scheme to support struggling householders by financially covering 30% of the additional interest paid per month, up to a limit of €1,500. Mortgage holders with an outstanding balance of €200,000, with 20 years left, which would be typical in a county like Laois or Offaly, have seen their interest rates go from 2% or 2.5% to 5.5% or 6%.
"They will now be paying €400 extra per month. The scheme that we are proposing will see some relief for them and would mean €120 extra in their pockets, or €960 in total in the current year," the Laois/Offaly TD continued.
"This would not apply to second homes, holiday homes or rental properties. It would only apply to the family home. It would therefore be most beneficial for those in the family home and workers and families on low and middle incomes, because it is set at a limit, whereas previously that was not the case.
"We developed these proposals in consultation with the Parliamentary Budget Office. Based on that analysis, it would cost a maximum of €400 million.
"This measure is sensible and affordable. It can be funded by a portion of the State's projected surplus this year of more than €10 billion. Families need real support, not empty words. We are often asked for solutions, and we constantly point them out. I ask the Minister to take this one on board. We have a financial surplus and we have the money. We are asking the Minister to use a very small part of this to help ordinary people, especially hardworking mortgage holders who need relief at this difficult time," he ended.