LATEST PROPERTY NEWS AND QUESTIONS 15-May-2024
BANKS & HOUSE REPOSSESSIONS: KILKENNY
15th May 2024
The Central Bank's Code of Conduct on Mortgage Arrears (CCMA) delineates the guidelines that lenders must adhere to when addressing borrowers facing mortgage arrears or those in pre-arrears. The code mandates lenders to approach these cases with empathy and positivity, aiming to assist individuals in meeting their mortgage obligations.
Upon completion of the assessment, the lender is required to explore various options for alternative repayment arrangements. These options encompass:
1. Paying interest only or interest and a portion of the capital for a specified period.
2. Permanently or temporarily reducing the interest rate.
3. Deferring repayments (in full or part) for a designated period.
4. Extending the mortgage term.
5. Changing the type of mortgage.
6. Adding arrears and interest to the principal.
7. Equity participation, involving a reduction of the principal with the transfer of part of your equity.
8. Warehousing a portion of the mortgage, possibly through a split mortgage.
9. Reducing the principal.
10. Participating in a "deferred interest" or another voluntary scheme.
In certain situations, the lender may necessitate a change from an existing tracker mortgage to another mortgage type if it deems that none of the options allowing you to retain your tracker are suitable or sustainable. If an alternative arrangement is proposed, requiring a change from the tracker mortgage, and you can afford and sustain it, the lender may provide this alternative.
When offering an alternative repayment arrangement, the lender must furnish you with a comprehensive written explanation, including:
1. Details of the new repayment amount.
2. The term of the arrangement.
3. The impact on the mortgage term.
4. The outstanding balance.
5. Existing arrears, if any.
6. How interest will be applied to your mortgage loan account under the new arrangement.
7. Notification that the arrangement will be reported to the Central Credit Register and the subsequent impact on your credit record.
8. Information regarding your right to appeal the lender's decision, including the appeal submission process.
Additionally, the lender is obligated to advise you to seek appropriate independent legal and/or financial advice.
BANK HOUSE REPOSSESSIONS: County by County
15th May 2024
OBTAINING A MORTGAGE: SOME COMMON QUESTIONS
Understand the types of mortgage loans offered by each provider. Different lenders may offer various loan programs with different terms, such as fixedrate mortgages, adjustablerate mortgages (ARMs), FHA loans, VA loans, and more.
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Open a separate savings account specifically for your home purchase. This can help you keep track of your progress and prevent you from dipping into the funds for other purposes.
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Self build mortgages
With a self-build mortgage, you draw down the money in stages - for each stage of the build - and only pay interest on the amount you’ve borrowed, rather than the whole loan amount.
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Check with Professional Associations:
Verify if the broker is a member of professional associations, membership in such organizations can indicate a commitment to ethical standards.
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Where can you get a mortgage in Ireland?
You can go to your current bank or another bank or building society. It’s best to compare mortgages with a wide range of lenders, using our comparisons, to find the best deal.
You could also get help from a mortgage broker (mortgage credit intermediary), but you may be charged for their services.
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Use of Property
Do you intend to reside at the property?
Is the property intended as a secondary residence/ holiday home? Other uses?
Is the property Freehold? Leasehold?
Is the property newly constructed?
Do you require stage payments?
Do you intend to let or part let?
Will any business activity, trade or profession be carried out at the property? You will need to provide details if this is the case.
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Savings: A healthy savings account shows that you are financially disciplined and can cover unexpected expenses.
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Some borrowers prefer to have direct control over the mortgage application process. Working with a broker means entrusting a third party with this responsibility, which may not suit everyone.
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IrishHouses: Mortgage Debt, Arrears and House Repossession
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