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Borrower-Lender Engagement is Key to Finding Resolution to Mortgage Arrears

30th September 2019

 

Constructive engagement with lenders is key to borrowers in mortgage arrears finding workable resolutions, according to Banking & Payments Federation Ireland (BPFI); and in many cases this enables people to stay in their homes.

The most recent figures from the Central Bank of Ireland show that some 94,000 private dwelling home (PDH) mortgage accounts were restructured at end-June ’19; and the vast majority of these are working for both borrower and lender in that almost 4 out of 5 are not in arrears.

At the same time, some interesting statistics arise from an analysis of the most recent report from the Housing Agency (Q2 2019) on the operation of the Mortgage to Rent Scheme – which enables distressed borrowers to stay in their homes.

  • Of the total 4,712 cases submitted to the Scheme since its inception (in 2012)
    • 527 cases have been successfully completed; and
    • a further 1,058 cases are being actively considered
  • The Scheme is being supported by BPFI members – through a wide range of institutions that includes the main retail banks and credit servicing firms. All are offering Mortgage to Rent as a solution to borrowers who engage.
  • The Scheme is being operated by City and County Councils all over the country
  • The eligibility criteria for the Scheme were further expanded by the Department of Housing, Planning and Local Government as and from July 1st

BPFI has updated and reissued its guide, Important Information to help people in mortgage arrears, to further encourage distressed borrowers, or their trusted representatives, to engage with lenders – the guide can be downloaded here.

Commenting on the figures, Brian Hayes, BPFI Chief Executive, stated:

“We appeal to all people in mortgage arrears to contact their lender as soon as possible if they haven’t already done so; or to contact a trusted third party such as the Money Advice and Budgeting Service (MABS) among others.  The Housing Agency figures show that over 500 individuals/families are thankfully still in their homes today by having done so; while Central Bank figures show that some 94,000 borrowers are better able to manage their mortgage repayments. The recent arrival to the market of Home for Life is a welcome addition to the choice of bodies offering Mortgage to Rent (MTR) – such as Home Options, iCare and a range of Approved Housing Bodies.  Together with the recent widening of the eligibility criteria, this should help to significantly expand the number of homeowners that can avail of MTR as a workable solution for them.” 

 

 

Note: Banking & Payments Federation Ireland (BPFI) represents the banking, payments and fintech sector in Ireland.  Together with its affiliates, the Federation of International Banks in Ireland and the Fintech & Payments Association of Ireland, BPFI has 100 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.

Contact: For further information contact Jillian Heffernan, Head of Communications, jillian.heffernan@bpfi.ie 087 9016880

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