MABS warns of mortgage arrears crisis linked to defective block homes

A new report from the Money Advice and Budgeting Service (MABS) has revealed what it describes as a ‘hidden crisis’ facing families living in homes affected by defective concrete blocks who are also struggling with mortgage arrears.

The report, entitled ‘Between a Rock and a Hard Place’, highlights how two long-running problems – structural damage to homes and unresolved mortgage debt – are colliding, placing significant financial and emotional pressure on households in Donegal and Mayo.

While the defective concrete crisis has been well documented, the report's authors argue that far less attention has been paid to the situation of homeowners who are also in arrears on their mortgages. MABS says the interaction of these two issues is creating severe uncertainty for families, with current systems failing to offer adequate protection, clarity or breathing space.

Homes built before, during and after the Celtic Tiger boom went on to develop cracking and structural failure due to deleterious materials such as mica, pyrite and pyrrhotite used in their construction.

For many families, the slow pace of remediation has meant years of living in damaged properties. According to the report, some of those same households are simultaneously dealing with mounting mortgage arrears, legal correspondence from lenders and, in some cases, the threat of repossession.

MABS says affected households are being pulled in two directions. On one side, they are trying to navigate the complex and stressful process of securing remediation for their homes. On the other, they are facing the ongoing trauma of mortgage arrears, including court proceedings and pressure from lenders.

The result, the report finds, is some homeowners in constant fear of losing the very home they are attempting to repair.

Read more: High court judge impatient over delays in ‘class action’ defective blocks lawsuit 

The research focuses on MABS clients in Donegal and Mayo and combines policy analysis with in-depth client interviews. It documents the day-to-day impact on families, including financial strain, deteriorating mental health and prolonged uncertainty about their future.

Karl Cronin, national spokesperson and regional manager at MABS, said the organisation meets families every week who are struggling to cope with the dual pressures.

“These families are not looking for special treatment,” he said. “They are looking for a fair, workable system that recognises their dual situation of mortgage arrears and defective blocks, and offers solutions that give them a chance to rebuild their lives and their homes.”

MABS is calling for a more coordinated, practical response.

Central to the report’s recommendations is the establishment of a single independent body to oversee both the State’s defective concrete block remediation scheme and the mortgage arrears process for affected households. The proposed body would be empowered to grant breathing space, make determinations in complex cases - including those involving repossession - and provide clear public information on timelines and expectations.

In addition, the report makes 19 further recommendations aimed at reducing harm and improving outcomes. These include updating Central Bank codes to recognise defective block-affected borrowers as vulnerable consumers, strengthening oversight of lenders, publishing mortgage arrears data and addressing power imbalances between borrowers and financial institutions.

Other proposals include removing financial and administrative barriers within the grant scheme, improving insolvency and resolution options, and ensuring clear valuation rules for defective homes. The report also calls for increased resourcing for MABS and the creation of a formal mechanism to ensure borrowers’ lived experiences inform policy decisions.

The findings were discussed this week at an event in Letterkenny involving service providers and policy experts. MABS says it will continue to engage with stakeholders to progress the issue.

The report was authored by Dr Stuart Stamp, an independent social researcher at Maynooth University, and Paul Joyce, a legal and policy analyst and former senior policy analyst with FLAC. 

MABS has encouraged anyone affected by defective concrete blocks and mortgage arrears to seek advice as early as possible. Free, confidential support is available through local MABS offices, online at mabs.ie or via the national helpline on 0818 07 2000.