Menu
23/09/2008
Ritchie To Tackle Home Repossessions
Those facing home repossession in NI have been pledged support.
The NI Housing Minister Margaret Ritchie has announced that she will step-in and support those faced with losing their homes.
The Minister said her proposed scheme would go further than those for struggling homeowners in the Irish Republic and the rest of the UK.
Despite this, the Government will not help out investors or those with a means to gain other assistance.
Commentators have already suggested repossessions in Northern Ireland are set to skyrocket, as banks become more anxious to recoup investments, following the global economic squeeze.
Ms Ritchie has not indicated how much a 'bail-out' scheme will cost taxpayers, but stressed the importance of the Government standing over those who it had encouraged to get on the 'property ladder'.
The Minister told the Belfast Newsletter: "If we are to encourage people onto the housing ladder, we need to support them when there is a danger of them falling off it through no fault of their own.
"I will shortly be launching a consultation document on the proposed mortgage rescue scheme."
Ms Ritchie said the rescue package would be aimed at householders who are unable to keep up with mortgage repayments.
"We will be doing that through both preventative action and direct intervention."
Funding for the scheme will also go towards providing housing advice, although it is expected the bulk of the public money will be used to pay off mortgages.
"The central point of the measure would allow the Department for Social Development (DSD), through the Housing Rights Association, to support people who cannot find enough money each month to pay their mortgage and are at risk of becoming homeless as a result," said Minister Ritchie.
"There will be two options - flexible tenure and mortgage-to-rent. Under flexible tenure, the applicant will be offered an equity sharing option based on the amount that they can afford to retain.
"Mortgage-to-rent will be available to people who have no equity and cannot afford a mortgage payment."
Ms Ritchie illustrated how the scheme could work and said that an individual with a house worth, say £160,000, who cannot afford to pay the remaining £15,000 on their mortgage is being threatened with repossession.
The Minister said her department would step in and pay the £15,000 in return for a 10% stake in the home.
The DSD would then charge a small rent to cover the amount owned and receive 10% when the property was sold.
Ms Ritchie said such a scheme would not be designed to encourage irresponsible buying: "I wouldn't like to think that I was encouraging people to be irresponsible - I'm here to help," added the Minister.
(PR/JM)(BMcC)
The NI Housing Minister Margaret Ritchie has announced that she will step-in and support those faced with losing their homes.
The Minister said her proposed scheme would go further than those for struggling homeowners in the Irish Republic and the rest of the UK.
Despite this, the Government will not help out investors or those with a means to gain other assistance.
Commentators have already suggested repossessions in Northern Ireland are set to skyrocket, as banks become more anxious to recoup investments, following the global economic squeeze.
Ms Ritchie has not indicated how much a 'bail-out' scheme will cost taxpayers, but stressed the importance of the Government standing over those who it had encouraged to get on the 'property ladder'.
The Minister told the Belfast Newsletter: "If we are to encourage people onto the housing ladder, we need to support them when there is a danger of them falling off it through no fault of their own.
"I will shortly be launching a consultation document on the proposed mortgage rescue scheme."
Ms Ritchie said the rescue package would be aimed at householders who are unable to keep up with mortgage repayments.
"We will be doing that through both preventative action and direct intervention."
Funding for the scheme will also go towards providing housing advice, although it is expected the bulk of the public money will be used to pay off mortgages.
"The central point of the measure would allow the Department for Social Development (DSD), through the Housing Rights Association, to support people who cannot find enough money each month to pay their mortgage and are at risk of becoming homeless as a result," said Minister Ritchie.
"There will be two options - flexible tenure and mortgage-to-rent. Under flexible tenure, the applicant will be offered an equity sharing option based on the amount that they can afford to retain.
"Mortgage-to-rent will be available to people who have no equity and cannot afford a mortgage payment."
Ms Ritchie illustrated how the scheme could work and said that an individual with a house worth, say £160,000, who cannot afford to pay the remaining £15,000 on their mortgage is being threatened with repossession.
The Minister said her department would step in and pay the £15,000 in return for a 10% stake in the home.
The DSD would then charge a small rent to cover the amount owned and receive 10% when the property was sold.
Ms Ritchie said such a scheme would not be designed to encourage irresponsible buying: "I wouldn't like to think that I was encouraging people to be irresponsible - I'm here to help," added the Minister.
(PR/JM)(BMcC)
Related Northern Ireland News Stories
Click here for the latest headlines.
03 June 2008
Lifeline Thrown To Desperate NI Home Owners
An innovative scheme to reduce the number of home repossessions is to be discussed today at a high level meeting between NI Social Development Minister Margaret Ritchie and the Council of Mortgage Lenders - which represents 98% of all the companies that issue mortgages.
Lifeline Thrown To Desperate NI Home Owners
An innovative scheme to reduce the number of home repossessions is to be discussed today at a high level meeting between NI Social Development Minister Margaret Ritchie and the Council of Mortgage Lenders - which represents 98% of all the companies that issue mortgages.
29 June 2011
Ritchie Can't Believe Wilson On Corporation Tax
SDLP Leader Margaret Ritchie has claimed Finance Minister Sammy Wilson "doesn't believe" in the policy of reducing corporation tax, despite leading the negotiations with the UK Government.
Ritchie Can't Believe Wilson On Corporation Tax
SDLP Leader Margaret Ritchie has claimed Finance Minister Sammy Wilson "doesn't believe" in the policy of reducing corporation tax, despite leading the negotiations with the UK Government.
27 May 2022
Finance Minister To Ensure Energy Payments Are Made In NI
Finance Minister, Conor Murphy, has said that he is committed to working with Treasury to ensure the Energy Bills Support Scheme will provide assistance to citizens here given the absence of an Executive.
Finance Minister To Ensure Energy Payments Are Made In NI
Finance Minister, Conor Murphy, has said that he is committed to working with Treasury to ensure the Energy Bills Support Scheme will provide assistance to citizens here given the absence of an Executive.
25 November 2024
Other News In Brief
DfC Launch Public Consultation On Gender Pay Gap A consultation on proposed changes to Section 19 of the Employment Act (Northern Ireland) relating to the requirements for employers to publish information on the pay of male and female employees has been launched by the Department for Communities.
Other News In Brief
DfC Launch Public Consultation On Gender Pay Gap A consultation on proposed changes to Section 19 of the Employment Act (Northern Ireland) relating to the requirements for employers to publish information on the pay of male and female employees has been launched by the Department for Communities.
10 September 2002
MLA's call for new firefighters pay scheme
Two UUP MLA's have called on the Northern Ireland Executive to implement a new pay scheme for Ulster's firefighters. North Antrim UUP MLA the Rev Robert Coulter called for the introduction of a new pay formula in a motion to the Assembly on Monday. Mr Coulter said he hoped it would help achieve a real remedy to the question of firefighter’s pay.
MLA's call for new firefighters pay scheme
Two UUP MLA's have called on the Northern Ireland Executive to implement a new pay scheme for Ulster's firefighters. North Antrim UUP MLA the Rev Robert Coulter called for the introduction of a new pay formula in a motion to the Assembly on Monday. Mr Coulter said he hoped it would help achieve a real remedy to the question of firefighter’s pay.
-
Northern Ireland WeatherThis Evening and Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
