Sinn Féin TD Pearse Doherty has called on the government to explain why they rejected calls to provide mortgage interest relief to homeowners crippled by ever-rising interest rates.
The rejection of Sinn Féin’s proposals in the Dáil last night came hours after the European Central Bank warned borrowers to brace themselves for a further three interest rate hikes by the end of July – on top of the six increases since last July. These hikes mean taking a hit of thousands of euro a year for many, with some now paying interest rates as high as 8%.
Teachta Doherty said that homeowners in Donegal need emergency measures.
Speaking after the Dáil debate, Deputy Doherty said: “Rising mortgage rates were already putting homeowners under increased financial pressure – now thanks to the government’s refusal to intervene, families will struggle to keep their heads above water.
“Donegal representatives went into last night’s vote on this issue fresh from hearing the ECB’s warning that three further increases are to come in the next three months.
“They also know the impact that people having to pay this rise in mortgage repayments whilst living in homes that are crumbling around them or already demolished is having in our county.
“Yet with their eyes wide open to these facts, the government turned their backs on homeowners in this constituency. I am calling on them to explain why.
“Before this week’s debate, the Free Legal Advice Centre had warned that many homeowners were at risk of falling into arrears, while MABS warned that hikes are having disastrous effects.
“These increases are also yet another obstacle standing in the way of aspiring first-time buyers, many of whom continue to suffer with crippling rents and rising house prices due to the government’s failure to deliver affordable housing.
“Temporary mortgage interest relief would support struggling mortgage holders by up to €1,500, yet the government has failed to listen with the situation now approaching a crisis point for many people.
“I call on the government to support Sinn Féin’s sensible and necessary proposals.”
