Fine Gael Cork East TD, Tom Barry, has today welcomed reports that 'split' mortgages are set to be introduced for struggling homeowners, saying the solution is very similar to a proposal he made to the Minister for Finance, Michael Noonan, last year.

"I am delighted that 'split' mortgages look set to be offered by most major banks here in a bid to provide some relief to homeowners who are struggling with huge monthly repayments. This time last year I presented Minister Noonan with a similar solution called the Parked Percentage Mortgage Plan (PPMP), which was subsequently considered by the Mortgage Arrears Working Group.

"I have also been driving the issue as part of my role as Chair of Fine Gael’s Internal Committee on Jobs, Enterprise and Innovation. The Committee recently heard from senior staff in each of the main banks about how they are proposing to address the mortgage crisis.

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"Under the PPMP, I suggested that every mortgage should be assessed on an individual basis, to identify how much of the loan the homeowner can realistically service. The remainder would then be parked, to be addressed at a later stage. This is essentially what will happen under the ‘split’ mortgages solution being progressed by the Government.

"The mortgage crisis is one of the single biggest challenges facing this country, and it is essential that the banks fully engage to ensure a lasting solution can be reached for every homeowner in difficulty. The issue deserves to be treated as an absolute priority.

"The ‘split’ mortgages idea has a number of positives. It will allow people to stay in their own homes, without fear of eviction. It prevents the mortgage from becoming a bad debt, while giving the homeowner some additional disposable income. And crucially, it will prevent the mortgage crisis from spiralling further out of control, by stopping more people from entering arrears.

"I will continue to pursue this issue to ensure this option can be made available to homeowners as quickly as possible."

(CD)