Minister for Social Protection, Joan Burton, TD, has suggested that the scope of the independent financial advice offered to borrowers under the Mortgage Arrears Information and Advice Service should be broadened to become a two stage process.

The Minister was addressing a Stakeholder Seminar to discuss the recommendations of the Review of the Independent Financial Advice Service held in Dublin.

The Review was undertaken to ensure that the Independent Financial Advice Service is meeting its objectives. It examined all aspects of the service including the take up of the service and its possible extension to other interested parties.

A group comprising representatives from Department of Finance and the Department of Social Protection was established to oversee the review. It has been considered by the Mortgage Arrears Implementation Steering Group and the Cabinet Committee on Mortgage Arrears and Credit Availability.

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Minister Burton told the Seminar: "A key message to people who are experiencing difficulties with their mortgage payments is that engagement with their bank at an early stage is vital to securing a long-term resolution and I note that both the Central Bank and lenders report that significant numbers of borrowers in arrears have not yet engaged with their lender.

"In order to address this very important issue, I am suggesting that the scope of the financial advice be broadened to become a two stage process.

"Stage 1 would involve a borrower being able to avail of the assistance of an accountant, of the borrower's choosing, to complete their Standard Financial Statement in their initial engagement with their lender to find a long term mortgage resolution. As well as assisting the borrower to complete this statement, the accountant would also assist the borrower assess their options.

"Stage 2 would involve an independent and confidential follow up engagement with an accountant following the receipt by the borrower of a long-term mortgage debt resolution offer. This engagement would include discussion of other mortgage debt resolution options now available."

(CD/JP)