Date Published: 11-May-2011
BY ENDA CUNNINGHAM
More than 4,000 financially-troubled homeowners in Galway have switched their mortgages to ‘interest only’ repayments as they struggle to save their properties.
But the Money Advice and Budgeting Service (MABS) has warned that many are ‘hoping against hope’ when it comes to meeting their debts.
And concerns have been expressed that by switching to interest only repayments, homeowners will leave their family with a legacy of debt.
According to new figures from insurer Caledonian Life, in the region of 4,200 mortgage holders in Galway have recently switched from ‘capital plus interest’ mortgage repayments to interest only – but while payments are substantially reduced, the lump sum remains untouched, which can lead to crippling financial difficulties when a property is in negative equity.
“It is estimated that approximately 4,200 mortgage holders in Galway have switched to interest only mortgage payments to assist with afforability, but these homeowners may now be leaving their families open to thousands of euro of legacy debt.
“The most recent report from the Financial Regulator would suggest that this switch has become a common cost-saving strategy, as the public attempt to deal with affordability issues in the current recession,” the Caledonian report reads.
A spokesperson for MABS told the Connacht Tribune that lenders have an effective ‘duty of care’ to mortgage holders and must provide them with the most suitable solution to their money problems.
“The Code of Conduct [on mortgage arrears] outlines the responsibilities that the mortgage provider has in relation to customers – they have to outline all available opions and assist the consumer in choosing the best option. Any agreement should be reached in the best interest of the mortgage holder, and hopefully that’s what is happening.
“The objective is to keep people in their homes, but some people are in a situation of hoping against hope. Hoping that the architecture around mortgage default will change, or that a job will be found. We’re in a transition phase and there is a lot of uncertainty,” he said.
Meanwhile, a local insurance broker has warned that unless mortgage protection policies are renewed to reflect changes to mortgage repayments, families could be left ‘in the red’ for years to come.
Read more in today’s Connacht Tribune
Galway ‘Park and Ride’ could become permanent
Date Published: 07-May-2013
A park ‘n’ ride scheme from Carnmore into Galway city could become a permanent service if there is public demand.
That’s according to the Chief Executive of Galway Chamber of Commerce, Michael Coyle.
The pilot scheme will begin at 7.20 next Monday morning, May 13th.
Motorists will be able to park cars at the airport carpark in Carnmore and avail of a bus transfer to Forster Street in the city.
Buses will depart every 20 minutes at peak times and every 30 minutes at offpeak times throughout the day, at a cost of 2 euro per journey.
Tuam awaits UK hay import as overnight rainfall adds to fodder crisis
Date Published: 09-May-2013
Tuam is now awaiting a third import of hay from the UK as overnight rainfall has increased pressure on farmers struggling to source fodder.
A total of ten loads are expected at Connacht Gold stores throughout the West with a load expected at the Airglooney outlet this evening or tomorrow.
Farmers throughout the county have been struggling to cope with the animal feed shortage and a below than normal grass growth due to unseasonal weather conditions.
Overnight rainfall in the Galway area has also added to the problem making ground conditions in many areas are quite poor.
Joe Waldron, Agricultual Advisor with Connacht Gold says farmers in short supply can contact the Airglooney outlet on 093 – 24101.
Transport Minister urges end to Bus Eireann strike action
Date Published: 12-May-2013
The Transport Minister is urging drivers at Bus Éireann to engage in talks with management, in an effort to bring their strike action to an end.
There were no Bus Éireann services operating out of Galway today as a result of nationwide strike action by staff affiliated with the national bus and rail union.
Up to 20 Bus Éireann drivers are continuing to picket outside the bus depot at the docks in the city this evening.
Drivers from other unions have decided not to cross the picket line and go into work today – causing the disruption to be even worse.
Bus drivers are protesting against five million euro worth of cuts to their overtime and premium pay – cuts which Bus Eireann says are vital to ensure the future viability of the company.
The majority of services nationwide are disrupted, and the union say strike action will continue until management are willing to go back into negotiations.
However, it’s not expected to affect school services next week.
Galway bay fm news understands that around 70 percent, or over 100 Galway bus Eireann drivers are affiliated with the NBRU.