The Minister for Social Protection Joan Burton has announced the provision of free independent professional financial advice to borrowers in mortgage distress.

The Minister said: "I am pleased to announce that independent financial advice will be available to mortgage holders who are being offered long-term resolution proposals by their lenders. This advice will be provided by a panel of accountants drawn from members of the main accountancy institutes in Ireland who have agreed to participate and support this independent service."

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"When a lender is proposing longer-term mortgage resolutions the lender will advise the borrower to obtain independent financial advice on the proposed arrangement and that, if the borrower wishes to avail of this option, that the lender will pay €250 to an accountant of the borrower’s choosing for the provision of this advice," the Minister explained.

An operating protocol for the provision of this advice has been agreed between the accountancy bodies, the Institute of Chartered Accountants Ireland, the Association of Certified Chartered Accountants, the Institute of Certified Public Accountants and the lenders. The general scope of the advice will be limited to the borrower’s principal private residence.

(CD)