Code of Conduct on Mortgage Arrears
Important information on mortgage arrears
Under the Code of Conduct on Mortgage Arrears (CCMA) issued by the Central Bank of Ireland, all relevant institutions must have a process in place to assist customers in, or facing, difficulties paying their mortgage. This process is called the Mortgage Arrears Resolution Process (MARP).
It is important that you tell us about any problems that you are having, or might have, with repaying your mortgage. The earlier we know about problems, the earlier we can begin to work with you to find a solution.
We want you to understand the process that ACC Loan Management and Asset Services, our agent, use to help customers to deal with mortgage repayment difficulties and mortgage arrears.
Who does this apply to?
MARP applies to all co-operating customers with a mortgage secured against their Primary Residence who
- do not think they will be able to pay their monthly mortgage repayment in the future or;
- already have some problems in paying their mortgage and may have built up some repayment arrears.
The term ‘Primary Residence’ means a property which is:
- the residential property which the borrower occupies as his/her primary residence in this State, or;
- a residential property which is the only residential property in this State owned by the borrower.
What should you do?
- Talk to us– we strongly encourage you to get in touch with us as soon as you have, or think you may have, difficulties repaying your mortgage;
- Read our Information Booklet - We have produced an information booklet on the Mortgage Arrears Resolution Process (MARP) Please read this booklet as it sets out details of what MARP is, how it works, how it protects you, and what kinds of solutions may be possible . Please click HERE to view the MARP Information Booklet;
- Seek independent advice – we recommend that you seek independent financial/legal advice – for example the services of an accountant or financial advisor. The Money Advice and Budgeting Service (MABS - www.mabs.ie) has information on mortgage arrears and you can avail of its free information and services.
What will we do?
Talk to you – we have specially trained MARP advisors that will help you. Once you have contacted us we will encourage you to meet with one of our MARP Advisors to discuss your personal circumstances. We will also give you a form called a Standard Financial Statement (SFS). This will show the information we need to see to consider your application for an alternative repayment arrangement. You can also click HERE to view and download an SFS. Please click HERE to access a Consumer Guide to Completing an SFS.
Once we have a better picture of your overall circumstances, we will work with you to identify the best option for you. These options are set out in full in the MARP Information Booklet. Please click HERE to view this booklet.
Fees & Charges - If you engage reasonably and honestly with us (under MARP) to resolve your repayment difficulties, fees and charges will not be applied. However, we must point out that those customers who are classified as “not co-operating” with us may lose the protections of MARP and may be liable for a surcharge interest of 0.5% per month.
MARP and the term “not co-operating” are explained in more detail in the MARP Information Booklet.
Other useful information for mortgage holders
The Central Bank of Ireland issued a revised Code of Conduct on Mortgage Arrears (CCMA) on 26 June 2013, which relates to how the relevant institutions should treat consumers in respect of their Primary Residence. This version of the CCMA became effective on 1 July 2013. A copy is available on the Central Bank of Ireland website. Please click HERE to view this document.
The Money Advice and Budgeting Service (www.mabs.ie) provides an impartial, confidential and free service to those seeking budgetary advice and to those seeking help to manage a heavy debt burden. The Banking and Payments Federation Ireland (BPFI)/MABS have produced an Operational Protocol - Working Together to Manage Debt. A copy is available on the Irish Banking Federation website. Please click HERE to view this document.
Citizens Information Board - www.keepingyourhome.ie
This website aims to provide comprehensive information on the services and entitlements available if you are having difficulties making your mortgage repayments.
For other useful information and general guidance for mortgage holders who may be experiencing financial difficulties, check out the following websites:
Office of the Revenue Commissioners - www.revenue.ie
The Revenue Commissioners can provide information on mortgage interest relief, tax credits and benefits to which you may be entitled.
Department of Social Protection - www.welfare.ie
The Department of Social Protection can provide details on job seekers allowance and mortgage interest supplement together with other welfare benefits to which you may be entitled
The Insolvency Service of Ireland -www.isi.gov.ie
The Insolvency Service of Ireland's objective is to restore people who are insolvent to solvency in a fair, transparent and equitable way. It provides information to borrowers on the process available under the Personal Insolvency Act 2012 (as amended).
Warning: Your home is at risk if you do not keep up payments on a mortgage or any loan secured on it.
Warning: If you do not meet the repayments on your credit agreement, your account will go into arrears. This may affect your credit rating, which may limit your ability to access credit in the future.
If your loan is a variable rate loan please note:
Warning: The payment rates on this housing loan may be adjusted by the lender from time to time.
If your loan is an endowment loan please note:
Warning: There is no guarantee that the proceeds of the insurance policy will be sufficient to repay the loan in full when it becomes due for payment.
If your loan is interest only please note:
Warning: The entire amount that you have borrowed will still be outstanding at the end of the interest-only period.
Warning: If you fail to make repayments on loan facilities secured by your Primary Residence on an ongoing basis and arrears persist, ACC Loan Management may have no alternative but to issue legal proceedings for repossession which may result in you losing your home.