Q.  My wife and I have been paying our mortgage payments regularly up until now but I have just lost my job and we can’t meet the payments. What are our options?

17.01.10

You should talk to your mortgage lender as soon as possible. Don’t delay and allow arrears to build up. Lenders want borrowers to continue payments and are usually willing to negotiate revised payment arrangements for people in difficulty. They see repossession of your home as the last resort. Under the Financial Regulator’s Consumer Protection Code your lender must agree a remedial action plan with you as soon as it detects arrears starting to emerge. It must try to help you to manage your financial commitments and not allow the situation to worsen.

The Financial Regulator’s Code of Practice on Mortgage Arrears builds on the Consumer Protection Code. Its main requirement is that lenders must wait at least six months from the time arrears begin before taking any legal action. In addition, both AIB and Bank of Ireland have agreed to delay court proceedings for repossession of a principal private residence until after 12 months of arrears appearing.
If your wife works less than 30 hours a week, you may be entitled to Mortgage Interest Supplement from your local Community Welfare Officer.
You should also ensure that you are getting whatever amount of mortgage interest relief you are entitled to (this is generally done at source). The 2010 Budget extended the period that relief is available for qualifying loans taken out before 1 July 2011. People whose entitlement to relief is due to expire in 2010 or after continue to qualify for relief at the applicable rate up until the end of 2017.
The Money Advice and Budgeting Service (MABS) is a free service to help you plan a budget and deal with debt ( www.mabs.ie , Lo-call 1890 283 438). You can also visit the Citizens Information Board’s new microsite, www.keepingyourhome.ie for comprehensive information on mortgages and repossessions.

Citizens Information: Buncrana 074 9363496; Carndonagh 074 9373741

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