Given the current economic environment, it is an unfortunate fact of life that there are many property owners in difficulty with their mortgage. In many cases, the owner has missed only one or two mortgage payments and has now received a letter from IBRC in relation to the arrears. If you are in difficulty, contact IBRC immediately.
The primary responsibility lies with the borrower(s) to advise IBRC of any problems with repayments. Failure to do so could give rise to more serious arrears problem with negative for the borrower such as accumulating arrears that will affect his/her credit rating and give rise to the risk of losing his/her property. If the borrower’s cumulative arrears exceed three months repayments, IBRC may instruct solicitors in relation to the arrears.
The information below is for individuals who have borrowed to purchase a Residential Investment Property. A Residential Investment Property is a residential property which is not
(i) the residential property which the borrower occupies as his/her primary residence in this State; or
(ii) a residential property in this State which is the only residential property owned by the borrower.
If your mortgage loan is for either (i) or (ii) above, then please refer to “Mortgage on Primary Residence section” on our website
What are your Options?
Do you have Payment Protection Insurance?
Your mortgage may be covered by payment protection. If so, claim as early as possible to avoid missing any time limits stated in the policy.
Are you maximising your income?
Check that you are getting all your social welfare and tax entitlements. Your local Citizens Information Centre will be able to help you (your local telephone directory contains details of the Centre nearest to you). There may be other ways of maximising income, letting a room (IBRC’s permission may be necessary, depending on the terms of your mortgage). Check to see if you are entitled to any benefits that you are not already receiving e.g. you may not be receiving tax relief on your mortgage or you may not be receiving the appropriate amount. You can contact the Revenue Commissioners to discuss your tax relief payments on Lo-Call 1890 46 36 26 or alternatively you can apply for tax relief online at www.revenue.ie.
Increasing your mortgage term
If your mortgage has, for example, 12 years left to run, IBRC may be willing (depending on your age and all other relevant circumstances) to extend this. Although your monthly repayments will decrease, in the long run you will pay more in interest than you otherwise would have done. Additional life cover may also be required.
Payment Break
If your difficulties are only likely to be short term, IBRC may be prepared to give you breathing space to allow for circumstances to improve. Please contact us to discuss your options.
Interest Only Payments
Again, if your problems are hopefully short term, IBRC may be willing to accept just the interest part of the payment for a period, subject to your individual circumstances.
Switching Loans
It may be possible to change from an endowment to an annuity mortgage. If you give up your endowment policy, you may get a lump sum that you could use to reduce arrears. However bear in mind that your mortgage payments will go up. Please note there may be costs involved.
Selling your Residential Investment Property
The difference between the value of your residential investment property and the amount that you owe IBRC is called the equity in your property. If your arrears are increasing and you are unable to meet the basic mortgage payment, the equity will go down all the time. You may end up with very little to spare or even in negative equity if you still owe IBRC money even after your house is sold. If there is little hope of finding a solution to your current mortgage difficulties you may need to consider selling your Residential Investment Property.
Refinancing through another lender
It may be possible to refinance your mortgage with another financial institution.
In listing the above options IBRC is not agreeing to provide all or any of the options. Each case is individually assessed. Equally the appropriateness of these measures must be determined by the factors of each individual arrears case. You should take appropriate independent advice
What steps should I take?
Talk to IBRC
Make contact with IBRC as soon as possible to discuss any mortgage related concerns or problems you may be experiencing. Call us on +353 (0)1 6096182
Remember to budget and be realistic
Don’t make promises you can’t keep! For example, if you contact IBRC and you agree to pay €100 per week towards your arrears, make sure you can actually afford to pay that sum. If you can’t afford it and then miss a couple of these agreed payments, it could make it more difficult to formalise an alternative repayment arrangement with IBRC. A mortgage budget form is available from us on request and will aid in coming to an affordable and realistic agreement.
Look at all your options
If you cannot foresee a real prospect of being able to maintain repayments and clear the arrears and get back to a healthy financial situation, you should consider selling the property. Also sit down and look at your income and expenditure. Is there any expenditure that you can cut or reduce? If you have mortgage arrears, it is important to resolve the problem now.
Financial Information
Once you make initial contact with us, we will ask you to complete a Standard Financial Statement (SFS) detailing all of your income and expenditure.
IBRC will need you to provide supporting documentation with the completed SFS including three recent payslips and/or social welfare certificates. If you are self- employed we will require a copy of your most recent business accounts. We may also require copies of recent current account statements. Our Collections Unit will contact you in relation to any additional documentation that may be required. Once we receive the completed SFS and supporting documentation, IBRC will assess the financial information provided.
Please see below for details of debt counselling services and other services that maybe helpful in an arrears situation.
Money Advice and Budgeting Services Ph: 1890-283438
Legal Aid Board Ph: (01) 6441900
Citizens Information Board Ph: (01) 6059000
Repayment arrangements
Once an SFS has been completed IBRC will then reassess the mortgage based on your present financial circumstances and loan to value and may require verification of information provided. Where possible, IBRC will propose an alternative repayment arrangement. Any alternative repayment arrangement will need to be documented in writing. It is imperative that any agreed alternative repayment arrangement is complied with. If you default on these repayments, you should bear in mind that IBRC may have right to take legal action against you.
Once a mortgage repayment is missed, the Irish Credit Bureau will automatically be notified. Any arrears on your mortgage may affect your credit rating.
IBRC will write to you to inform you of any missed payment and the arrears position on your account. It is important that you make immediate contact with IBRC to discuss the arrears situation. If an arrears situation persists IBRC may commence legal action to repossess the mortgaged property and recover the debt outstanding.
Telephone Communication
IBRC are available to deal with customer queries in relation to your mortgage. You can contact our Mortgage Arrears Support Unit on +353 (0)1 6096182. Any alternative repayment arrangements discussed or proposed by telephone or verbally in a meeting must be put in writing by the borrower/s.