BANK OF IRELAND & AIB
The Department of Finance has recently reported that around 60,000 mortgage restructuring plans have been set up between the owners of private homes and the six major lending institutions providing their mortgages.
So, if you are in mortgage arrears, how is your bank
prepared to treat you?
All of the banks have declared that they wish to keep the
number of property repossessions to a minimum and to
allow as many customers as possible currently
in mortgage arrears to remain living in their homes.
If you are an Allied Irish Bank customer in mortgage
arrears, you may be interested to know that, to date, AIB
has agreed mortgage write-downs in about 2,000
cases. AIBs' policy on write-downs so far has been to
determine the amount of the mortgage debt that it feels
proper in each particular case, after a voluntary sale
of the property is concluded.
AIB has declared that it expects around 1,000 repossessions. The bank has also disclosed that, up to December 2013, 6,702 owner occupied and 2,529 buy to let homes are the subject of legal procedings.
As far as Bank of Ireland, Ulster Bank & PTSB customers are concerned, they currently cannot expect any type of mortgage write-down. Ulster Bank has cited issues such as "moral hazard" in its refusal to allow mortgage write-downs. Bank of Ireland has declared that it is not the "policy or practice" of the bank to consider mortgage write-downs, unless the owner is declared bankrupt.
If you are a Bank of Ireland customer in mortgage arrears, simply handing back the house keys and walking away will not stop the bank from taking legal action against you to recover the remainder of the outstanding mortgages. On the positive side, the bank may agree a repayment schedule involving monthly mortgage repayments as low as € 50 in particular circumstances.
PTSB customers will receive no write-downs whatsoever, the bank is instead promoting the idea of split mortgages, which have been offered to 7,000 customers. This split mortgage scheme involves dividing mortgages into two accounts in order to reduce monthly repayments: a ‘Main Mortgage Account’ and a ‘Warehouse Account’.
This system reduces your monthly payments, allowing you to repay what you can currently afford. The balance of the Warehouse Account will not become due until the end of the mortgage term. PTSB has stated that, by the end of March 2014, 5,318 owner occupied and 1,518 properties were involved in some type of legal proceedings.
SELL YOUR HOUSE & KEEP YOUR TRACKER MORTGAGE
NATIONAL RESIDENTIAL PROPERTY PRICES INCREASE BY 10.6 %
DUBLIN REGION 22 % | YEAR END MAY 2014
All information supplied by IrishHouse.ie/PropertyRegister.ie is subject to errors & omissions and does not constitute legal, investment or any other form of advice. Always obtain independent professional advice for your own particular situation.
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