Sir, – Regarding your article “Central Bank berates banks for slow progress in tackling mortgage crisis” (Business, October 17th).
I reduced my monthly mortgage payments a year ago as I was unable to sustain paying the full amount. I made the decision to reduce the payments as I could not afford to pay the full amount and pay bills as well. I would have put myself into a very stressful situation financially and emotionally. My mortgage repayments were almost on par with my monthly salary. Either households pay the full amount on their mortgage or live on the breadline (Kathy Sheridan, Home News, October 17th).
While the mortgage arrears resolution process (MARP) was introduced to help people stay in their homes and agree a resolution with their bank, it has not dealt with the reality of negative equity and mortgage costs. My mortgage has now increased by €10,000 (in a year) due to the difference between what I can pay and what I originally signed up to pay. The chickens have finally come home to roost and I am sure that many householders around the country who have reduced their payments are slowly seeing their mortgage increase quite dramatically.
Both the Central Bank and the Department of Finance are in agreement that the banks must find solutions in respect of households that are in non-sustainable situations and have an inability to pay. Why then are households still facing this problem of increasing debt with nothing being done to really help them? In budget 2012, the Government increased tax relief at source by 5 per cent to people who bought houses between 2004 and 2008. It is now October and still this has not been passed on by Ulster Bank to its customers.
Could the Central Bank and the Department of Finance make the first move in resolving the mortgage crisis, because if we are waiting on the “teenage” banks to do something, I anticipate it could be a very long long time and in a land far far away. - Yours, etc,