Over 30,000 homeowners renegotiate mortgages...
More than 30,000 struggling homeowners have negotiated alternative mortgage repayment options with banks and building societies in a bid to hold onto their homes, according to estimates from the Irish Banking Federation.
A spokesman for the IBF said that mortgage customers in financial difficulty had negotiated a range of agreements with lenders, including payment breaks, longer mortgage terms and interest-only periods.
‘‘Things are difficult and people are under pressure, but it’s a case of picking up the phone and discussing the options with your lender in good faith," he said.
The IBF will launch a new consumer guide to dealing with mortgage repayment difficulties this week. It recommends that mortgage customers in financial difficulty should contact their lender as soon as possible, and be sure to respond to letters or phone calls in relation to arrears.
Under the statutory code of conduct on mortgage arrears, lenders must wait at least 12 months after arrears arise before beginning legal proceedings to repossess a property.
However, this grace period does not apply if a borrower refuses to engage with the lender.
The IBF expects the number of borrowers negotiating alternative mortgage repayment structures to rise further. ‘‘We expect that number may well increase - but by how much, we just can’t say," said the spokesman.
However, he said that an increase in the number of people with newly-negotiated repayments represented a willingness by lenders to engage. ‘‘If we are going to see a number going up, we want it to be that one, not repossessions," he said.
Report by Emma Kennedy - Sunday Business Post.
More than 30,000 struggling homeowners have negotiated alternative mortgage repayment options with banks and building societies in a bid to hold onto their homes, according to estimates from the Irish Banking Federation.
A spokesman for the IBF said that mortgage customers in financial difficulty had negotiated a range of agreements with lenders, including payment breaks, longer mortgage terms and interest-only periods.
‘‘Things are difficult and people are under pressure, but it’s a case of picking up the phone and discussing the options with your lender in good faith," he said.
The IBF will launch a new consumer guide to dealing with mortgage repayment difficulties this week. It recommends that mortgage customers in financial difficulty should contact their lender as soon as possible, and be sure to respond to letters or phone calls in relation to arrears.
Under the statutory code of conduct on mortgage arrears, lenders must wait at least 12 months after arrears arise before beginning legal proceedings to repossess a property.
However, this grace period does not apply if a borrower refuses to engage with the lender.
The IBF expects the number of borrowers negotiating alternative mortgage repayment structures to rise further. ‘‘We expect that number may well increase - but by how much, we just can’t say," said the spokesman.
However, he said that an increase in the number of people with newly-negotiated repayments represented a willingness by lenders to engage. ‘‘If we are going to see a number going up, we want it to be that one, not repossessions," he said.
Report by Emma Kennedy - Sunday Business Post.