Services

Dealing with your Home mortgage if in arrears or pre-arrears

Anyone can get into difficulty managing their finances, even small changes in your circumstances can put pressure on your mortgage payments.

​

Arrears are where a repayment has not been paid in full, on the agreed date as per your original contract.

​

If you are struggling to pay your mortgage you will have to start a lengthy and sometimes complicated process with your bank. This can be time consuming and somewhat stressful and at times intimidating.

​

There are however, structures and procedures in place to assist borrowers and by following these, the process can be a lot less daunting.

​

If you are in arrears or pre-arrears with your mortgage you are afforded the protection of the Code of Conduct for Mortgage Arrears (Revised June 2013). This code lays out the Mortgage Arrears Resolution Process (MARP). All banks are obliged to follow this process and it is available to read at your lenders website.

​

The Mortgage Arrears process is for principle private residence only and the aim is to come to an agreement, based on a set of options, for a sustainable mortgage for the borrower, based on an assessment of the borrower’s financial position.

​

We can help you with your standard Financial Statement (SFS). All lenders are required to use this SFS as a guide to assess options for borrowers.

​

Lenders are not obliged to provide all solutions as listed in the Code of Conduct, they can pick and choose which solution to offer.

​

Some of the Options we negotiate are:

· Extend your mortgage term
· Interest only repayment on a temporary basis
· Reduced repayments on a temporary basis
· A debt write off
· Payment of interest and a part of the capital for a period
· A split mortgage

​

It is essential to deal with any offer quickly as an appeal is outside the MARP process and there is only a three month protection when you leave the MARP process before a lender can start proceedings to repossess your property. Your lender does not want to repossess your home, repossession is the last resort so it is important to engage with your lender as soon as you get into difficulty with repayments.

​

You should if possible obtain professional advice from Money Village before signing any documents from your lender.

Un-Cooperative Borrower

Section 28 of the Code of Conduct allows a bank to define an uncooperative borrower. If a bank considers a person to be uncooperative they are required to write to the borrower giving them time to engage.

​

If a borrower does not engage following the steps taken by the lender they are deemed uncooperative and repossession proceedings can begin straight away.

​

If you are deemed uncooperative, you may be subject to penalty charges and interest and may not be eligible to apply for the provisions of the Personal Insolvency Act 2012.

 

Rental Investment properties

Separate rules apply in the banks for dealing with Rental Investment properties. Typically the banks will look for a minimum of the rent, and may appoint a rent receiver if this is not forthcoming.

​

Informal Debt Management Plans


If you’re feeling overwhelmed by debt, struggling to pay secured and unsecured debts such as credit union loans, credit cards, store cards and catalogues and would like to be in a position to pay one affordable amount to your creditors every month, a debt management plan could offer the ideal solution.

​

What is a debt management plan?

A debt management plan is an affordable repayment programme managed by Money Village who will help you work out what you can afford to repay each month.

The advantages of a debt management plan

You have to communicate with just one organisation, the debt management company, rather than dealing with your creditors direct.

The debt management company will, in most cases, get your creditors to freeze the interest on your accounts.

 

Warning:
You may still have debt outstanding after completing the debt management process.