Banks urged to bring forward proposals to assist defective blocks homeowners

The banking sector has been called on to bring forward credible proposals to assist homeowners affected by defective blocks.

Donegal TD Pearse Doherty said the victims of the defective block scandal have been let down by the redress scheme brought forward by the Government.

“Many face significant funding shortfalls in their efforts to rebuild their homes and lives,” he said.

“Homeowners also face rising mortgage costs on properties that are crumbling, and in some cases, already demolished.

“This situation is simply not sustainable.

“I have engaged extensively with the Banking and Payments Federation, retail banks, the Central Bank and Minister for Finance on this issue.

“I have underlined the need for bespoke arrangements to be put in place to assist homeowners with rising mortgage costs and to address finance shortfalls including the provision of bridging finance.”

Deputy Doherty said the banks “must intensify work” in this area in consultation with homeowners so that these issues can be addressed.

He added: “It is in the interest of banks that these homes are remediated, and their asset values restored.

“It is imperative that these homeowners are assisted without delay.

“The Finance Committee have invited the Banking and Insurance Redress Focus Group to come before it in the coming weeks, on my recommendation, to give voice to the challenges they are facing on the ground.

“It is time for the banks to grasp the severity of this issue and bring forward a credible solution without delay.”