Mortgage struggle cuts deepest for Galwegians

Homeowners in Galway are struggling with their finances more than those anywhere else in the country, according to the Irish Mortgage Holders Organisation.

And people at risk of losing family land along with their homes are amongst the biggest cohort approaching the IMHO for help.

David Hall, the ‘mortgage crusader’ who founded the IMHO, told the Connacht Tribune that by a 2:1 ratio, those pleading for help are from Galway.

He warned that without Government intervention, people will continue to lose their homes – repossession courts in Galway regularly have listings of more than 200 cases.

“We’ve done a couple of visits to Galway, and on one of those occasions we were there until 3am offering advice to people who were in trouble.

“Last weekend, I was in Galway socially, and people were approaching me. Out of everywhere I go, I find the highest number of people interacting is in Galway and the West. It’s a slam dunk by a 2:1 majority,” said Mr Hall.

At the moment, the IMHO – a not-for-profit debt solution organisation – is helping 97 clients in Galway.

But he said many more are ‘teetering on the brink’ and could face serious financial trouble if the household suffers a cut in income, or if the European Central Bank raises interest rates.

Mr Hall said he believes there are three reasons for Galway people’s struggles with their mortgage lenders – including the heavy concentration of banking ‘hubs’ here during the Celtic Tiger boom.

“Some of the banks had the heavy concentration of banking ‘hubs’ here during the Celtic Tiger boom.

“Some of the banks had major branches in Galway where they had lending independence, and with that authority came people borrowing a lot more than they could realistically afford to repay.

“People also waited a long to time get themselves organised, come forward and ask for help.

“Then we have the complication of houses with land around them, and the cross-securitisation of that land. This might be family land which is now set to be taken along with the house.

“I’ve been doing this for seven years, and one thing I’ve found is that people who are deeply in debt are under serious pressure and are not thinking straight, and asking for help is not always their first response.

“There may have been a job lost in the household, overtime payments may be gone, and arrears accumulate.

“Now consider what will happen if and when the European Central Bank increases interest rates. Those who are on the edge will be in serious trouble,” said Mr Hall.

He explained that people who lose their homes put further pressure on social housing demands and leads to further increases in homelessness.

Mr Hall suggested the Government needs to urgently identify those at risk of losing their homes and take over the property as a form of social housing.