Press release
Minister Humphreys and Minister McEntee extend service to support families in mortgage arrears
From Department of Social Protection
Published on
Last updated on
From Department of Social Protection
Published on
Last updated on
The Minister for Social Protection Heather Humphreys and the Minister for Justice Helen McEntee have today announced that the Abhaile scheme is to be extended for a further four years.
The scheme has proven critical in terms of supporting families who find themselves in serious or long-term mortgage arrears and are at risk of losing their homes.
Over 26,400 households have been supported since the scheme was set up in 2016.
And 85 per cent of households who availed of support under Abhaile either have a solution in place or are on the path to doing so.
Minister Humphreys and Minister McEntee received Cabinet approval this week to extend the Abhaile scheme until the end of 2027.
Meanwhile, an independent review of Abhaile has found a continued need for the service to help borrowers in long-term arrears, as well as those who may enter arrears due to increasing mortgage interest rates and cost of living pressures.
The decision to extend Abhaile also includes extending the work of the MABS Dedicated Mortgage Arrears service.
Announcing the extension of the Abhaile scheme until the end of 2027, Minister Humphreys stated:
“I know from my days working in a Credit Union the stress placed on households who find themselves struggling to meet their mortgage repayments.
“The prospect of losing your home can be a deeply traumatic experience for the entire family.
“Given the current interest rate increases and the cost-of-living pressures that people are under, Minister McEntee and I felt it was only right to extend the Abhaile service for a further four-year period.
“In addition, this extension is supported by a recently completed independent review which recommends Abhaile continue, and by the commitment in the current Programme for Government to continue to fund Abhaile.
“I want to take this opportunity to thank the staff in the Abhaile Service for their hard work and commitment.”
Minister McEntee further said:
“Through its free, expert financial and legal support services, Abhaile aims, wherever possible, to find solutions for borrowers that enable them to remain in their homes.
“It has a track record of helping families that fall into difficulty.
“Over 26,400 borrowers at risk of losing their homes have been supported since the service was established in 2016.
“Abhaile is often the first point of contact for distressed mortgage holders, and it can provide successful and sustainable solutions for people.
“I know that the decision to extend Abhaile until the end of 2027 will enable it to reach borrowers who have not yet engaged and those who may be at risk.”
The government funded Abhaile service was set up in 2016 to help those in long term home mortgage arrears.
Through its free, expert financial and legal support services, Abhaile aims, wherever possible, to find solutions for borrowers that enable them to remain in their homes.
Funded and managed jointly by the Department of Social Protection and the Department of Justice, Abhaile was extended in 2019, and again in 2022, taking account of continuing need and a future external strategic review of the service.
This external review is now complete, and it recommends the Abhaile service be extended for a time-specific period. The review finds that Abhaile is effective and provides recommendations on further improving some elements of the service.
The review finds that Ireland has a specific issue with long term mortgage arrears and recommends a specific focus on finding solutions for these borrowers.
Home mortgage arrears have fallen and continue to fall, but those long term arrears remain significant. There are 48,760 mortgage accounts in arrears in Ireland, with 22,015 in arrears of more than 1 year and over 18,418 for more than 2 years.
This four-year extension of the Abhaile service is also supported by the commitment in the current Programme for Government to continue to fund Abhaile and ensures the continued availability of free and expert support and advice to those who need it most.
The four-year period also allows the Department of Social Protection and the Department of Justice to implement the external review’s recommendations.
Minister Humphreys concluded:
“All Abhaile services are confidential and are provided without charge to the borrower.
“I would encourage anybody who is in difficulty with mortgage arrears to take the first step and call the Money Advice and Budgeting Service.
“The vital service provided by MABS’ Dedicated Mortgage Arrears advisors has also been extended until the end of 2027 by Government today.”
Abhaile was initially established in 2016 with the intention of being a three-year response to the impact of the financial crisis on mortgage arrears in Ireland.
A demand-led service, Abhaile provides free, expert financial and legal advice and assistance to borrowers in home mortgage arrears, in order to identify, and put into place, solutions to those arrears that will, wherever possible, enable the borrower to remain in their home.
Abhaile is funded and overseen by the Department of Justice and the Department of Social Protection. The service is delivered by the Insolvency Service of Ireland, the Legal Aid Board and the Money Advice and Budgeting Service (MABS).
Abhaile provides a range of different services. These comprise three services provided and staffed by MABS – a Helpline, the Dedicated Mortgage Arrears (DMA) service and the Court Mentor Service – and five financial and legal services:
In 2019, taking account of continuing need, the government approved a three-year extension to Abhaile, until the end of 2022. A commitment was also made under the Programme for Government 2020 to continue to resource Abhaile. In November 2022, Government again extended Abhaile, to the end of 2023, in the context of continuing need and a forthcoming external review of the service.
This external review is now complete, and it recommends the Abhaile service be extended for a time-specific period. The review found that Abhaile is effective and provides recommendations on further improving some elements of the service.
The review finds that Ireland has a specific issue with long term mortgage arrears and recommends a specific focus on finding solutions for these borrowers.
Since the inception of Abhaile in 2016 to the end of March 2023, 26,448 borrowers were assisted by the service. 13,816 of these borrowers received financial advice, while 12,632 of these borrowers were assisted by the DMA service, with 28% of those households having a solution in place and 57% continuing to be supported and advised with the view to putting a solution in place.
In addition, since the inception of Abhaile to the end of March 2023, 32,529 borrowers have been supported at repossession sittings by Court Mentors and Duty Solicitors, 3,031 borrowers have availed of the Consultation Solicitor Service, 3,091 borrowers have received legal certificates for Personal Insolvency Court Reviews, while 13,402 callers have been assisted through the MABS Abhaile Helpline.