SDLP MLA Mark H Durkan has criticised the lack of movement from ministers at Stormont and Westminster to implement support for homeowners struggling to make their mortgage payments.
South Belfast MP, Claire Hanna has also urged the Treasury to meet with financial institutions to see what additional protections could be afforded to homeowners.
The renewed calls follow a spike in interest rate which will place the North and Britain on the brink of a recession.
Economists have predicted a housing markets crash as thousands of households across the UK are due to come out of their fixed rates mortgage.
Mr Durkan has repeatedly called for a mortgage rescue scheme to be implemented throughout the pandemic and cost of living crisis.
Said the Foyle MLA: “The financial outlook for many families here could not be starker and it’s clear that the people of the North will be most adversely impacted by the cost of living crisis.
“Now as the threat of recession looms the likelihood of repossessions increases.
“People who are already struggling to make ends meet will see their mortgage payments rise by hundreds of pounds as fixed-rate periods come to an end.
“As a result, many people are not going to be able to make these payments.
“According to research from the Joseph Rowntree Foundation Northern Ireland has a greater proportion of homeowners in poverty than anywhere else across the UK. In fact, it has twice as many households behind with their mortgage payments.
“A position which has likely worsened in the intervening four years since this research was first published.
“It is utterly mindboggling that no action has been taken to date to support vulnerable homeowners.
“Over the past two years I have repeatedly petitioned both the Finance and Communities Ministers to implement a mortgage rescue scheme to help people who are under serious pressure.
“I was given several indications from the Communities Minister that work was underway and that the department were considering reversing the decision to change Support for Mortgage Interest from a benefit to a loan, but those efforts did not bear fruit.
“In the interim the pandemic and subsequent costs crisis has exposed the vulnerabilities of homeowners, placing them at greater risk of homelessness.
“The absence of mortgage support will have massive repercussions right across society; families at risk of losing their home as well as those within the Private Rented Sector will be pushed onto a 40,000 applicant long housing waiting list.
“In my own constituency, I’ve already witnessed a spike in the number of constituents made homelessness due to loss of private rented accommodation.
“It’s clear that the consequences for our communities will be severe and will serve to aggravate the existing housing crisis.”
Mr Durkan added: “The current economic situation has created a perfect storm aided by the inaction of Stormont and Westminster.
“People have been and are being failed. I’ve been calling for a mortgage support provision since 2020, as such the current political impasse cannot be blamed for ministers’ failure to act.
“My party colleague Claire Hanna MP has also called on the British Government to liaise with financial institutions to ensure they fully play their part and I hope that mortgage providers will work constructively with borrowers to offer solutions that work for people, such as a payment holiday, partial payment, or extension of mortgage term.
“People are already suffering as a result of the actions of this Government, and we need to ensure that further blows are not caused by additional financial penalties or people being put at risk of losing their homes.
“Steps must be taken to formulate a strategy to help homeowners. Caretaker ministers must demonstrate a willingness to help people in need.”
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