You can do each to keep in contact with your mortgage lender yourself or through an intermediary such as Refresh Money. Do not ignore the problem, as the 12 month period that the Government introduced for the start of home repossessions does not apply if a borrower is deliberately not engaging with their lender You should make good use of this time. Take steps to address the situation as early as possible.
Make sure you do a full an honest Household budget listing all your present and expected income plus all your essential outgoings. A good Debt Management Company such as Refresh Money can help you with this by completing the call me back form on the side or telephoning on Lo-call 1890 987 857 or 048 4175 2062
Make sure you pay your lender what you can afford. Check if you have any insurance policy which may cover this. Ensure you are maximising your income. (Do you meet the requirements to receive Mortgage Interest Supplement (MIS)?)
Don’t ignore communications from your mortgage lender or their legal representative. They are obliged by law, under the Code of Conduct on Mortgage Arrears (“the Code”), to keep in contact with you and to make every reasonable effort to agree an alternative repayment schedule with you before seeking repossession of the family home. Keep a record of all correspondence between you and your lender. If you are using a professional advisor such as Refresh Money then pass all correspondence to them so they can record it and take the necessary action to achieve the desired outcome.
Know what you can afford to pay to clear arrears on top of your mortgage payment. Be very realistic, taking into account the overall cost of running your household. Make a genuine and reasonable offer and don’t agree to try to pay more.
If you know the offer you have made is all you can genuinely afford based on your budget, don’t adjust your offer in response to a lender’s demands. Restate that your offer is based on your ability to pay. Lenders are obliged, under the Code of Conduct on Mortgage Arrears, to take into consideration your overall indebtedness in establishing your ability to repay; this includes full details of household income and expenditure. If you would prefer to have someone else speak on your behalf then Refresh Money is the company to do it for you
Your lender may suggest alternative repayment options to you. Before deciding on any option you should ask your lender what it will cost in the short, medium and longer terms and ask if you’re credit-rating will be affected
Examples of alternative repayment options include:
- To pay “interest only” for a period of time.
- Extend the term of your mortgage with the view of reducing your monthly payment.
- To put in place a payment moratorium (pause) for a set period of time.
If you cannot afford to pay anything off arrears you could ask for your arrears to be capitalised i.e. become part of the money borrowed and paid off over the remainder of the mortgage. There may be other options –ask your lender! Look, if necessary, for short term acceptance of your proposal (e.g. 6 – 12 months).
Ensure that any alternative repayment plan agreed with your lender is put in writing. Under the Code, your lender must do this. Keep copies of all your communications. Assure your mortgage lender that should your circumstances change you will make contact with them with a view to reviewing/revising your situation with them immediately..
If your negotiation isn’t successful and you have made every effort to repay what you can afford, don’t be afraid of the threat of court action. However, if your case does go to court, more than likely you will be liable for the court costs. It will help your case if you can show that you are making a genuine effort. You should seek independent legal advice in such cases. In certain circumstances, you may be entitled to free legal aid or advice.
Unfortunately, there are some situations where people will not be able to meet their mortgage repayments in the long term. If this applies to you, you must seriously consider your options. Independent legal advice from your solicitor and free, confidential and independent advice from a MABS adviser is recommended in such cases.
If you are tempted to “hand back the key” remember that you will remain liable for the outstanding debt, including any accrued interest, charges, legal, selling and other related costs. This course of action may have other impacts in relation to, for example, your entitlement to certain social welfare benefits. Our advice is to get independent legal advice before considering this course of action. If you are experiencing difficulties with your mortgage don’t panic. There are many things you can do for yourself like drawing up a budget, negotiating with your mortgage lender and looking at all your options. If You need help with this or any other financial matter then contact Refresh Money today on Lo-call 1890 987 857 or 048 4175 2062 or complete the call me back form on the side.
