THE CHAIRMAN of the Border Regional Authority, which represents local authorities in Louth, Monaghan, Cavan, Leitrim, Sligo and Donegal, has criticised what he called the “scandal of mortgage protection insurance” for people in social and affordable housing.
Cllr Matt Carthy, a former mayor of Co Monaghan, and member of Monaghan County Council, as well as a town councillor in Carrickmacross, yesterday said the Department of the Environment was forcing lower-income families to pay more in mortgage protection insurance than others in the community.
He said families and individuals who availed of local authority house purchase loans for social and affordable housing were unfairly compelled to participate in the ‘‘Local Authority Mortgage Protection Insurance Scheme’’.
He said borrowers could easily find alternative cover, providing the same protection, at cheaper rates.
But, he claimed “the rules laid down by the Department of Environment, Heritage and Local Government will not allow them this option, and as a consequence poor people are being penalised as a result of the scandalous situation”.
The chairman said: “I have been working on this issue for over a year, dealing with a number of constituents who were forced to take out insurance under this scheme. It is significant that all of them were able to find alternative cover, providing the same protection, at more competitive rates.”