Property
Irish Housing: Burton says €542m available under the Department’s Mortgage Interest and Rent Supplement Schemes in 2011
By Finfacts Team
Aug 29, 2011 - 12:50 PM

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Joan Burton T.D., Minister for Social Protection (centre)

Irish Housing:  Joan Burton T.D., Minister for Social Protection has outlined supports of €542m available under the Department’s Mortgage Interest and Rent Supplement Schemes in 2011.

The Mortgage Interest Supplement Scheme aims to provide short term support to help people repay interest on their mortgage on their home. The number of families receiving help under the scheme has increased by almost 340% in the last three years.

There are currently 18,679 households benefiting from the Mortgage Interest Scheme and the Department has provided €77.2m for 2011 an increase of almost €12m from 2010.

 Burton said “The premise behind the mortgage interest supplement is to support families who have suffered a loss of income and may be unable to meet the mortgage repayment on their family home. Mortgage arrears are a growing problem and while the lending institutions have a responsibility to engage with borrowers, a safety net is available and my Department is helping an increasing number of families in a very meaningful way”

In addition provision has also been made for some €465m in Rent Supplement payable to over 96,000 people in 2011. Rent Supplement is paid to people living in private rented accommodation who cannot provide for the cost of their accommodation from their own resources.

Conditions for Entitlement to Mortgage Interest Supplement

  • The supplement may be payable provided that:
    • The loan agreement was entered into at a time when, in the opinion of the Health Service Executive, the person was in a position to meet the repayments.
    • The residence in respect of which the loan is payable, is not offered for sale
    • He or she is habitually resident in the State
  • The Health Service Executive must also be satisfied in all cases that:
    • The amount of the mortgage interest payable by the claimant does not exceed such amount as the Health Service Executive considers reasonable to meet his or her residential and other needs.
    • It is reasonable to award a supplement having regard to the amount of any arrears outstanding on the loan.
  • In exceptional circumstances, the Health Service Executive may award a supplement where the amount of mortgage interest payable by a person exceeds such amount as the Health Service Executive considers reasonable to meet his or her residential and other needs. Such supplement is payable for a maximum of 12 months from the date of the claim.

Disqualification from Mortgage Interest Supplement

  • Certain categories of people are excluded from receipt of Mortgage Interest Supplement. These include:
    • A claimant or their spouse/partner who is engaged in full time employment, defined as more than 29 hours a week.
    • People involved in a trade dispute. However, the dependant spouse and dependant children of a person involved in trade dispute are not excluded from SWA for the period of the strike
    • People engaged in full time education
    • People unlawfully in the State
    • People who have made an application for asylum under the Refugee Act, 1996 and such application is awaiting final decision by the Minister for Justice, Equality and Law Reform.

 

Table 4 Number of Recipients of Rent Supplement, Mortgage Interest Supplement and Local Authority Mortgage Interest Supplement by County, End 2010
County Rent Supplement Mortgage Interest Supplement Local Authority Mortgage Interest Supplement
Carlow
1,484
411
3
Cavan
1,029
470
-
Clare
1,937
355
4
Cork
10,988
1,737
18
Donegal
3,194
367
1
Dublin
33,818
4,174
158
Galway
4,829
661
22
Kerry
2,339
244
1
Kildare
4,409
1,346
19
Kilkenny
1,577
433
17
Laois
1,151
241
12
Leitrim
530
53
-
Limerick
3,896
643
4
Longford
715
115
2
Louth
2,563
418
1
Mayo
3,012
684
16
Meath
2,552
1,333
-
Monaghan
598
176
6
Offaly
1,273
241
-
Roscommon
1,276
303
3
Sligo
787
49
1
Tipperary
2,680
604
1
Waterford
2,332
486
12
Westmeath
1,623
224
3
Wexford
4,055
1,251
20
Wicklow
2,613
629
2
Total
97,260
17,648
326

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