If you are experiencing financial difficulty, or if you are concerned about your mortgage repayments, you should talk to your lender as soon as possible. Even if you haven’t missed a payment yet, if you are experiencing any difficulty with making that payment, you should contact your lender to see how they can support you. You should not ignore the situation.
If you do not engage with your lender, your lender cannot assess your financial situation and cannot help you get back on track with your mortgage. Early engagement with your lender may prevent your financial situation from worsening.
Your lender will provide you with an information booklet that explains, amongst other things, your lender’s procedure for dealing with borrowers in financial difficulty, as well as relevant timelines. It is important that you read this carefully, and get appropriate advice if you need it, so that you are clear on the process that your lender will follow to get you back on track with your mortgage.
You will need to provide information about your overall circumstances, including your personal financial situation. The reason for this is to enable your lender assess which solutions may be appropriate and sustainable for you.
Following a review of your financial situation, your lender may offer you an alternative repayment arrangement (ARA). An ARA is a new agreement with your lender to address arrears or financial difficulties.
There are many different ARAs that your lender may be able to offer you. Your lender will explain the reasons why they are offering you a specific ARA, and also the reasons why they are not offering you other types of ARA.
Your lender is required to engage with you - in line with the Consumer Protection Code and the Code of Conduct on Mortgage Arrears – to aim to deliver appropriate and sustainable solutions and facilitate as many borrowers as possible to return to repaying their debt.
You should also consider contacting the Money Advice and Budgeting Service (MABS) who may be able to help you. MABS is the state’s money advice service and can help you if you have problem debt, or if you feel like your debts are in danger of becoming a problem. MABS is free, confidential and independent.
The state also provides support to mortgage borrowers who are in financial difficulty. MABS will be able to advise you if you are eligible.