This guide is designed to help you understand the Mortgage Arrears Resolution Process (MARP) and what support is available to you. We provide it to help members who think they may be in financial difficulty, those already in difficulty and those who are currently in an agreed arrangement with their mortgage. We want to assure you that we are committed to helping you with any repayment difficulties you may have, treating you fairly, and finding the most appropriate solution to best suit your circumstances.
The Central Bank of Ireland has a Code of Conduct on Mortgage Arrears (CCMA) to provide protection to mortgage holders. The protection of the CCMA applies to your “primary residence”: this is either a residential property which you occupy as your family home, or is your only residential property in the State that you may not currently be living in.
While the CCMA does not apply to Credit Unions in Ireland, East Coast Credit Union can confirm that they will comply (insofar as is reasonably practicable) with the CCMA.
A key element of this commitment is to provide our members with a Mortgage Arrears Resolution Process (MARP). The MARP is a four-step process that aims to engage with, support and find resolution for our mortgage customers who are in arrears, or are at risk of going into arrears.
It is very important that you understand the obligations that the Code places on you. You must co- operate with us to tackle your repayment difficulties. If you do not work with us or provide the information we ask for, you will be considered to be ‘not co-operating’ and will lose the protection given to you by MARP.
This Code sets out the framework that lenders must use when dealing with borrowers in mortgage arrears or in pre-arrears. All such cases must be handled sympathetically and positively by the lender, with the objective at all times of assisting the borrower to meet his/her mortgage obligations.
Call us or contact us as soon as possible. It is important that you contact us as soon as you become aware of any potential difficulties.
We have trained and knowledgeable staff if you would like to discuss any aspect of your mortgage. Just ask to speak to one of our credit controllers.
The first and most important step you can take is to talk to us as soon as you know you are in difficulty or are at risk of getting into difficulty.
Your next step is to fill in a standard financial statement (SFS). This is a form specially designed to give us a detailed understanding of your finances.
How can you receive your Stand Financial Statement Form?
- Download a copy here
- Email info@eastcoastcu.ie and we will send you a copy
- Call us on 01 286 2624
- Visit our branches
We rely on your SFS to fully assess your situation. It is vital that you fill in the SFS fully, honestly and accurately. We might ask you to give us documents to support what you tell us in the SFS (for example, we might ask for payslips). If you don’t fill in the SFS honestly or fully, or you refuse to provide any documents we ask for, we will consider you to be ‘not co-operating’, and you will lose the protection provided by the code.
When assessing requests for alternative measures we will use the information provided by you in the SFS to assess your individual situation. Careful consideration will be given to the following:
- Your personal circumstances – household income, expenditure and household budget Your overall personal debt
- Your current ability to make repayments
- Your previous repayment history
- Any other relevant personal information
At the end of the assessment stage, we will have a clear picture of your individual situation and whether it meets the criteria for any alternative repayment options or measures.
Our goal is to keep you in your family home wherever possible, where you are working with us to prioritise your mortgage repayments.
Once we have gathered and assessed all the information relating to your financial circumstances, in Step 4 of the process we will work with you to explore all possible options. While we can’t guarantee a specific outcome, we are dedicated to finding an appropriate resolution for you, wherever possible.
Following the assessment of your SFS, we will endeavor to agree an alternative repayment arrangement (ARA) with you. We outline below a list of potential ARA and the key features of these arrangements for illustrative purposes only.
Note: a specific ARA may not be available from East Coast Credit Union
An ARA being offered is subject to your individual circumstances and our assessment of your SFS. As such the following options may not be suitable for your particular situation.
- ‘Interest Only’ – this means that you will only pay the interest owed on your loan during this period and not the capital amount owed
- ‘Fixed Repayment’ – this means you will pay a series of agreed repayments incorporating interest and some capital, which reduces the amount of your monthly repayments for a time
- ‘Repayment Break’ – an arrangement to defer the payment of all or part of your mortgage repayment for an agreed period of time to ease the immediate financial pressure on you
- ‘Extension of Loan Term’ – an arrangement to extend the term of the mortgage which could reduce your monthly repayments by spreading the amount owed over a longer period of time
- ‘Capitalisation of the Arrears and Interest’ – an arrangement to restructure your repayments by spreading the amount of any arrears and interest over the remaining term of your mortgage.
- ‘Positive Equity’ – this means you will pay a reduced repayment amount agreed by us based on your affordability. You must be in positive equity in your property to be deemed eligible for this arrangement. There will be a residual balance outstanding at expiry of this arrangement and we will propose an appropriate solution at that time to clear the outstanding balance. This agreement is subject to periodic reviews and submission of updated financial information.
- ‘Split Mortgage’ – an arrangement where your mortgage is ‘split’ into two portions so that it is more affordable. The first portion is made of capital and interest repayments based on your current financial affordability levels. The remaining portion of the mortgage is deferred for a period of time where you will not be required to make payments.
Sometimes none of the alternative arrangements are suitable for or available to you and you may need to sell your property. If this is the case, we will work with you to help find the most appropriate approach to selling your home. The possible approaches include the following;
‘Voluntary Surrender’ – this involves the voluntary surrender of your property, by you to us. Where a shortfall exists, the shortfall will be repayable by you under new terms agreed by us
‘Mortgage to Rent’ – this is a Government initiative to help homeowners who have engaged with the MARP process to remain in their existing property, but on a rental basis. Mortgage to rent allows you to voluntarily surrender your property to the lender. The lender sells the property to an Approved Housing Association (AHA) and you will remain in the property as Social Housing tenants of the AHA
‘Negative Equity Trade Down’ – if your home is in negative equity, you may be able to sell this property and purchase a new property at a lower value. Any outstanding ‘negative equity’ is added to the new loan and secured on the new property. Full capital and interest repayments will be made on the new mortgage
‘Voluntary Sale of your Property’ – this involves you selling your property to clear or reduce the balance of your mortgage. Where the balance can be cleared in full, revised terms may be agreed by us whilst the property is selling, to match your affordability. Where a shortfall exists (i.e., the property is sold for an amount lower than what is currently owed on the mortgage), the shortfall will be repayable under new terms agreed by us
Each of the options for alternative repayment arrangements has strict qualifying criteria, with each case assessed on an individual case-by-case basis.
Important points to note in relation to alternative repayment options:
- An alternative repayment arrangement may be affordable for you in the short term but could be more expensive over the life of the loan
- You need to fully understand the implications of any new loan arrangement before you formally accept it. We strongly recommend that you obtain independent legal, tax and financial advice before agreeing to any resolution arrangement, in particular if you have any questions as to the legal, tax or financial implications of the arrangement
- We may require you to sign a settlement/confidentiality agreement as part of an alternative repayment arrangement or restructuring agreement. We recommend that you take independent legal advice prior to entering into a settlement/confidentiality agreement
- Life Assurance cover should take account of alternative repayment arrangements such as Interest Only or Repayment Breaks. We strongly recommend that you get advice on your life assurance needs
- You have the right to make a complaint at any time in relation to the treatment of your case under the MARP process or the credit union’s compliance with the MARP process. Complaints can be made through various media, for example, by telephone, in person, through your local branch, in writing or by email
- Once you remain within the MARP process, we will continuously monitor any alternative arrangement once it is put in place to establish if there has been any change in your financial circumstances since the arrangement was put in place. However, a review will take place immediately if you do not keep to the terms of your arrangement.
- You have the right to appeal our decision in the event that:
- We offer you an alternative repayment arrangement which you have declined and you have been advised in writing of other possible options that you may wish to consider
- We decline to offer you an alternative repayment arrangement ➢ We classify you as ‘not co-operating’.
If you wish to appeal, you must write to us within 20 business days of receiving a letter from us in relation to one of the above scenarios, setting out the reason for the appeal, and address your appeal to: the mortgage appeals officer at your credit union.
Our goal is to work with you to achieve an appropriate resolution to your financial difficulties. We will ensure that:
- Our communications are clear, concise and easy to understand
- Our communications are never aggressive, intimidating or harassing
- The volume of communications is proportionate and not excessive
- You are given sufficient time to complete any actions required before follow-up communication is attempted
- Future communication is agreed so that you are aware of any next steps
- We aim to treat all our members fairly and to act to the highest standards of professionalism at all times
It is vital that you co-operate with East Coast Credit Union in relation to your current financial situation. Where you fail to co-operate with East Coast Credit Union, you will be classified as not cooperating which may have the following implications:
- You will lose the protection afforded by the Mortgage Arrears Resolution Process (MARP).
- Legal action may be undertaken immediately. Where legal proceedings are initiated you will incur legal costs. Should it be necessary to take legal action it is important to be aware that irrespective of how the property is repossessed and disposed of, you will remain liable for any outstanding debt, including any accrued interest, charges, legal, selling and other related costs.
- This may impact on your eligibility for a Personal Insolvency Arrangement in accordance with the Personal Insolvency Act 2012.
- Charges and/or surcharge interest may be imposed on any arrears that arise on your mortgage account.
Under the code, you will be considered to be ‘not co-operating’ with us if any of the circumstances below apply:
1.a. You fail to give us full and honest information that has a significant effect on your financial information
1.b. You did not give us relevant information about your financial situation, within the timescale we specified; and
1.c. A three-month period elapses where:
1.c.1 You have not entered into an alternative repayment arrangement with us and during which you:
- You have failed to pay your mortgage repayments in full in accordance with the mortgage contract; or
- Meet your mortgage repayments in full in accordance with the mortgage contract but have arrears balance remaining on the mortgage; or
1.c.2 You have entered into an alternative arrangement and during which you:
- You have failed to pay the new repayments under the alternative repayment arrangement in full and;
- you have failed to contact or respond to any communications from us, or a third party acting for us; or
- you have contacted, or responded to communications from us, or a third party acting for us, but have not done everything required to enable us to complete an assessment of your circumstances
2. We have sent you a warning letter as required by the code but you have not carried out the action specified in that letter
East Coast Credit Union
Branch: Main Street, Bray, Co Wicklow
Telephone: 01 286 2624
Email: info@eastcoastcu.ie
Website: www.eastcoastcu.ie
Money Advice and Budgeting Service (MABS)
MABS) offers free and confidential independent advice and assistance with managing your finances. You may wish to seek assistance from MABS Telephone 0761 07 2000 – www.mabs.ie
The Central Bank
The Central Bank’s website provides independent information on financial products and includes a consumer guide to dealing with your lender on the Code of Conduct on Mortgage Arrears. Telephone 1890 777 777 - www.centralbank.ie
Citizens Information
The Citizens Information Board is the statutory body which supports the provision of information, advice and advocacy on a broad range of public and social services including health, employment, social welfare and money. If you are in mortgage arrears or are worried about mortgage arrears, you can contact the Citizens Information’s new dedicated Mortgage Arrears Information help line, phone 0761 074 050 (9.30am–5pm Monday to Friday) - www.citizensinformation.ie
Department of Social Protection
The Social Welfare website provide information relating to job seekers allowance, mortgage interest supplement and other welfare benefits you may be eligible for. www.welfare.ie
Office of the Revenue Commissioners
This website will provide you with information on all tax credits and benefits you may be entitled to. www.revenue.ie
Financial Services & Pensions Ombudsman
Address: Bureau, 3rd Floor, Lincoln House, Lincoln Place, Dublin 2.
Phone: 1890 88 20 90 (lo call) Fax: 01 662 0890
E-mail: enquiries@financialombudsman.ie
Insolvency Service of Ireland
Under the Personal Insolvency Act 2012, you have the right to consult with a Personal Insolvency Practitioner. For more information, please refer to their website at www.isi.gov.ie
Itsyourmoney.ie
Itsyourmoney.ie provides consumer information and education functions from the Central Bank of Ireland.
Consumer Helpline: 1890 432 432 Website: www.itsyourmoney.ie
