Interest only mortgages not the answer to crisis, insists Kenny

Interest only mortgages not the answer to crisis, insists Kenny

Taoiseach Enda Kenny has said putting distressed mortgage holders on “interest only” mortgages will not solve the mortage arrears crisis.

Mr Kenny told the Dáil yesterday that the only solution to the crisis was for each lender to work through cases on an individual basis.

He said that efforts to tackle the problem were beginning to take shape.

Financial regulator Matthew Elderfield attended a committee meeting yesterday where the issue was discussed.

The Taoiseach said it has been made clear to Mr Elderfield that if he needs further regulatory authority, that it will be made available to him.

Mr Kenny said he would like to see bank personnel going to local radio stations around the country and informing people about how many solutions they had arranged with mortgage holders and how they are dealing with the mortgage arrears issue.

He said the insolvency body will take up position next February, which will give banks an incentive to find solutions with distressed mortgage holders.

Mr Kenny was responding to Socialist Party TD Joe Higgins, during Taoiseach’s Questions.

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