The Irish government launched the scheme in Dublin to assist the increasing number of homeowners who are unable to meet their mortgage repayments
The programme will cost around €10million (£7.9m), with the social protection minister Joan Burton announcing that banks will cover the cost of the service.
Consumers will be encouraged to talk over their financial situation with an independent adviser with the aim of keeping as many people in their homes as possible.
Figures from the Irish Central Bank reported that 128,000 mortgages in the state are not meeting repayments, over one-in-ten of the country’s total mortgages accounts.
Minister Burton said: “The Government is acutely aware of the difficulties that many households are facing in meeting their mortgage repayments and addressing these difficulties is at the forefront of the Government’s agenda.
“Each family in mortgage arrears faces unique difficulties and we must have a range of solutions which can be adapted to resolve each family’s difficulties. The key message is engagement. People experiencing difficulties with their mortgage need to contact their lender.
“I am pleased to announce today that independent financial advice will be available to mortgage holders who are being offered long-term resolution proposals by their lenders.
“This cost of the new service will be met wholly by the banks and other lending institutions and depending on the number of people who avail of this element of the Mortgage Arrears Information and Advice Service the costs could be in the region of €10m.”
