Over €542 million available under Mortgage Interest and Rent Supplement Schemes

Ms Joan Burton T.D., Minister for Social Protection today (28 ^th August 2011) 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. 

Minister 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. 

Further details in relation to either the Mortgage Interest or Rent Supplements are available on 'www.welfare.ie'  

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Notes for Editors:

Background

• The purpose of mortgage interest supplement scheme is to provide short term support to eligible people who are unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence.  The supplement assists with the interest portion of the mortgage repayments only. See Appendix II for the qualifying conditions for the scheme.
• The supplementary welfare allowance (SWA) scheme, which includes rent and mortgage interest supplements, is administered on behalf of the Department of Social Protection by the Community Welfare Services division of the Health Service Executive.
• At the end of December 2010 there were 17,974 people in receipt of mortgage interest supplement, an increase of almost 340% in the last three years. As of 19 ^th August 2011, there are 18,679 households benefiting from the scheme and the Department has provided €77.2m for 2011 (2010: €65.6m).

Table 1

Mortgage Interest Supplement:

Recipient Numbers & Expenditure: 1999 to 2010

Table 2

Mortgage Interest Supplement

Primary Payment at Year End 2010

Table 3

Rent Supplement:

Recipient Numbers & Expenditure: 1999 to Present

** Provided for in Budget 2011

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.

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