Help mortgage holders cope with spiralling interest rates - TD

South Donegal-Sligo Leitrim TD Marian Harkin has appealed to the government to help mortgage holders, many of whom are being crucified by interest rate increases.

Supporting a Sinn Féin Dáil motion calling for the reintroduction of mortgage interest relief she said that at a time when families and individuals are being forced to make very difficult choices around food, heating and children's clothes, they are being further burdened by mortgage rate increases, which according to the ECB look set to continue.

“This motion comes in the context of inflation levels that are over 7.7% resulting in significant price increases on very many daily essentials like food, home heating oil, petrol, diesel and other basics.

“The interest rate increases are very significant for all mortgage holders, but they are crucifying people whose mortgages are held by vulture funds. Approximately 65,000 people or families are paying mortgage interest rates of 7% and more,” she said.

Reminding Finance Minister Michael McGrath that many of these people paid inflated prices for their homes in the first place, Ms Harkin said that loading them with significantly increased mortgage repayments might result in their being unable to continue paying their mortgages, an outcome that will bring heartbreak and devastation to families who could end up on housing waiting lists.

The deputy pointed out that since 2021 house prices have increased by 18% in Sligo and Leitrim, by 14% in Donegal and similar rates in Roscommon. Those who have taken out mortgages recently have paid significantly more for their properties and they will be under more pressure when the interest rates increase because their repayments were based on their monthly income.

The motion proposed that mortgage interest support be targeted at 30% of the increased interest costs relative to June 2022, and proposed that payments will not exceed €1,500 per annum.

According to Deputy Harkin, what makes the proposal worthy of serious consideration is the fact that it is targeted and temporary and confined to a family home.

“Under no circumstances could it be paid on a second property. The amount of €1,500 per annum, or about €125 a month, is capped so nobody can benefit massively, yet, it is a significant amount of money, especially for those under pressure. Even on a temporary basis it would make a real difference,” she said.