A €15m Government-funded scheme to help property owners who are insolvent and in serious mortgage arrears has been launched.

Already around 1,000 distressed homeowners have availed of the service through a pilot scheme.

The service, to be known as Abhaile, offers financial and legal advice and will be free for those who are eligible.

To qualify for the scheme, the mortgage-holder must be in arrears and insolvent.

People can apply for the scheme through the Money Advice and Budgeting Service or through a Personal Insolvency Practitioner (PIP).

Director of the Insolvency Service of Ireland Lorcan O'Connor said it was "important for people to recognise that there are solutions and supports available".

He continued: "In launching our information campaign today we hope that message will resonate clearly with those that need our help.

"This campaign, combined with the supports available under 'Abhaile' should ensure that many more people come forward for help over the coming months."

The Government is committing to spending €15m on the scheme over the next three years.

Minister for Justice Frances Fitzgerald said the number of people in mortgage arrears has been falling consistently but there are still 35,000 mortgage accounts in arrears of 720 days or more.

"Many of them have been served repossession orders, and many are at risk of losing their homes, and are not engaging with their lenders out of fear of despair."

Meanwhile, Minister for Social Protection Leo Varadkar has said the objective of the scheme is to help those who are insolvent to stay in their homes and prevent the "drift towards homelessness".

Speaking on RTÉ's News at One, Mr Varadkar said there are people who need the assistance of Government to resolve their debt issues.

"I really want to appeal to those people, if they haven't engaged with MABS, to do so now.

"The Government is here to help you and we do want to provide people with the independent legal, accountancy and financial advice that they need to sort out their arrears and their mortgage problems once and for all."

David Hall, of the Irish Mortgage Holders Organisation, has criticised the Government's new scheme to help people in mortgage arrears.

He said that "any effort is welcome, but it's a little bit too late".

He said giving vouchers to people to access solicitors and financial advisers will only benefit the professionals making money from this.

Mr Hall said there should be a one stop shop, as was promised in the Programme for Government.