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MAG Financial Information Event in
Letterkenny
15.01.20
THE Mica Action Group (MAG)
have for some time, been engaging with banks and
financial institutions in seeking their support for
mica affected homeowners. The outcome of this
engagement will be aired at a MAG Financial
Information Event on February 18th at 7pm in The
Clanree Hotel, Letterkenny where all affected
homeowners are invited to come along to find out
more.
Joe Morgan, MAG committee member, who spearheads the
engagement between MAG and the lenders said:
“As we await an imminent announcement on the Mica
Redress scheme this month, MAG are acutely aware of
the difficulties facing homeowners once this scheme
is open. MAG have been reassured by government
representatives that even though an election has now
been called, we are still on track for opening of
the scheme this month.
However, many families will struggle to access the
scheme due to the 10% personal contribution
requirement. Anxiety levels are extremely high due
to the enormity of the task ahead for homeowners to
fix their homes. Many families do not have this
amount of money and many are unsure how they could
go about raising it." |
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These photographs of defective Mica
blocks, from an Inishowen homeowner, show
significant deterioration in only one year. |
"As such, MAG have
invited Senior officials from the key lenders across
the county to speak at this event and to tell
homeowners what supports they can offer them. We
realise that Mica affected homeowners may be those
both with and without mortgages. We have asked
lenders to consider both of these types of
homeowners in their support packages.
MAG have already suggested supports such as:
• 0% interest on any new financing (loans) required
to make up the 10% personal contribution
• Adjusted existing mortgage finance throughout the
new financing timeframe to facilitate a net neutral
household budget (i.e. ensuring existing monthly
mortgage repayments are not increased after loan is
approved)
• A means tested lender contribution towards the 10%
(i.e. proposal for the lender to contribute 5% of
this contribution cost).
However, despite strong regional engagement, and
excellent initial feedback in the face-to-face
meetings, lenders have yet to provide a formal
response or announce a support package for affected
homeowners.
This event is an opportunity for lenders to inform
impacted families what support mechanisms will be in
place to help them raise the 10% contribution when
the scheme opens. It will be the first opportunity
for the major Irish lenders to set out their stall
in terms of what they will do to help resolve the
crisis.
The situation draws parallels with the financial
crash of 2007 when senior representatives of the
Irish banks approached senior representative of the
Irish taxpayer for assistance. Those same Irish
taxpayers are now asking the banks for their
assistance.
MAG expect that these requests will be reciprocated
with the same positive response received in 2007 as
we strongly believe it is both in the banks interest
and their corporate social responsibility to respond
in such a manner. it is crucially important that we
get early indications of lender positions to
encourage homeowner engagement in the remedial
process.” |
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