Mortgage lenders told they need to ‘step up’ for Mica homeowners

A draft letter was circulated among those affected over the weekend, which they are being asked to sign and send to their bank or mortgage institution.

The letter outlines how the issue has ‘been around for over 10 years’ and that the number of affected homeowners is expected to increase ‘five fold,’ with analysis being undertaken in other counties.

It tells how, when the government introduced the Defective Blocks Scheme, it ‘advised homeowners that the banks and mortgage companies had set up dedicated MICA or pyrite departments within their organisation.’

The letter asks if the institution has ‘adhered to this instruction from the Minister’ and if not, why not. It also asks they send on all relevant documentation ‘at hand’ for those affected so they can ‘review and explore the options you have made readily available to assist me with protecting the value of our asset.’

The letter highlight that the homeowner’s house is being declined insurance and added how they are sure that the institution may ‘realise the problem your institution has with the properties for which you have secured as an asset against borrowing.’

It also highlights how any property that does not fall under the scheme, such as a business property, will deteriorate and ‘so too does the value of the security to which your lending is underpinned.’

The letter asks that the correspondence be forwarded to the institution’s CEO and CFO and outlined how it would ‘not be good’ if the affected properties were being used in any loan book ‘used as security with any other bank on the international market.’ The letter outlined how the homeowner will also be ‘reaching out’ to the ECB. It continues: “It is time for you to step up and offer solutions, otherwise one of the biggest banking crises the State has ever witnessed could be about to happen.”