THE NUMBER of families in receipt of emergency State support who are struggling to meet mortgage repayments has almost doubled over the past year.
Figures compiled by the Department of Social and Family Affairs show 7,650 households are in receipt of the mortgage interest supplement, up from 4,100 a year ago.
The supplement is a means-tested payment aimed at easing the burden of people who have lost their jobs. It assists with the interest portion of mortgage repayments only. However, many people are not eligible for the payment because their spouse or partner is still in employment.
The numbers in receipt of the supplement have risen sharply in recent times. A total of 3,400 were receiving the supplement at the end of 2006, rising to 4,100 at the end of 2007.
Sinn Féin's housing spokesman Aengus Ó Snodaigh TD said the numbers applying for mortgage interest relief showed the need for Government action to ease the burden on mortgage holders.
"The Government needs to . . . impose a two-year moratorium on mortgage repossessions," he said. "It also needs to ensure that the Money Advice and Budgeting Services [Mabs] is adequately resourced . . . and that the agency is represented when renegotiating terms of repossessions with the banks."
He added that the Government should also consider increasing the Budget allocation to the Mortgage Interest Supplement Scheme and widen eligibility.
Many TDs say large numbers of homeowners are being refused mortgage assistance by community welfare officers because the eligibility rules are too stringent.
The Financial Regulator says that up to June of 2008, almost 14,000 mortgages were more than three months in arrears. This figures is up from 11,252 in December 2006.
The Government says it has responded to growing hardship among mortgage holders by increasing mortgage interest tax relief for first-time buyers and expanding its social housing investment programme.
It says more than 9,000 local authority homes were delivered last year and that increased numbers of social houses will be delivered over the coming years.
The mortgage interest relief changes, which came into force on January 1st, mean the rate will increase from 20 per cent to 25 per cent for the first two years of the mortgage, and to 22.5 per cent for the following three years.
Labour and Sinn Féin say much more radical steps are needed. They have called for a moratorium on house repossessions and an expanded programme of social housing. In the Dáil last month, both parties called on the Government to increase investment in housing in order to stabilise the economy and meet housing need.
