Changes to the Mortgage Interest Supplement Scheme from 1 June 2009

Changes to the mortgage interest supplement scheme were announced in the recent supplementary budget. From 1 June 2009

• The minimum contribution which a person pays towards mortgage interest is being increased by €6 from €18 to €24 a week.

All existing recipients of mortgage interest supplement will have their payment automatically reduced and each person is being notified by letter of the details of the reduction in their payment.

Questions which may arise on the reduction in mortgage interest supplement payments are answered below.

Why are the reductions being made?

The contribution of €24 a week is more in line with the minimum rent typically paid to local authorities in various parts of the country by their tenants.

When are the changes being implemented?

The reductions in mortgage interest supplement payments are being implemented automatically for the majority of customers by 1st June. Reductions for those paid fortnightly, four-weekly or quarterly will be made by Community Welfare Officers.

What reductions are being made?

The minimum contribution which a person pays towards mortgage interest is being increased by €6 from €18 to €24 a week from 1 June 2009. A small number of people currently receiving very low payments may no longer qualify for a mortgage interest supplement payment because of these reductions.

Will people be told what the reduction is in their payment?

Those currently receiving a mortgage interest supplement payment are being advised by letter in advance of the reduction being made to their mortgage supplement payment. Most should receive this letter in the week commencing 25 May 2009. The letter provides details of (i) the mortgage interest supplement in payment prior to 1 June 2009, (ii) the reduction being made and (iii) the resulting new mortgage interest supplement payment from 1 June 2009.

Is there anyone else who can help with advice?

The Money Advice and Budgeting Service operate a helpline which operates from 9am to 8pm Monday to Friday on 1890 283 438. The Helpline Advisers can assist people in dealing with money management issues. For more information see 'www.mabs.ie'.