There are a lot of options available to our customers in terms of repayment schemes, and there are numerous advantages and disadvantages to these. So let us guide you through some of the Alternative Repayment Arrangements (ARAs).
This is where the term on your mortgage account is extended. This reduces the amount of your monthly repayments by spreading the repayments over a longer period of time.
You only pay the interest on your mortgage for an agreed period longer than 12 months.
You only pay the interest on your mortgage and part capital for an agreed period greater than 12 months.
The repayments on your mortgage are set at an affordable level and the interest rate is reduced for a period of up to five years. At the end of the arrangement the interest rate returns to the prevailing variable rate as per your original terms and full capital and interest repayments resume.
The outstanding arrears are added to the remaining capital balance of your mortgage and repaid over the remaining term.
The ultimate goal is for you to repay your mortgage in full. Your mortgage is ‘split’ into two portions based on your current financial affordability levels. The first portion will be repaid via capital and interest repayments over the term of the mortgage (“main mortgage portion”). The second portion of the mortgage is deferred and in some cases, this may be until maturity of the mortgage (“deferred portion”) or where your financial situation improves.
Check below for some of our most recent restructures for clients.
The examples of Restructures given on our Website are indicative of some of the resolutions being offered by our clients’ lenders. Each file is assessed on a case-by-case basis some of the given examples may not apply in your current situation
PM, Louth - November 2016
"Our clients owed an overall amount of €220,000 with arrears of €68,426 on their family home. Having restructured their account, their lender has warehoused €84,500 and customer is making repayments on €135,500. Their lender will reduce the warehoused amount by 5% for every 5 years that the customer stays in the arrangement and will potentially be reduced by approximately €29,575 at the end of the mortgage term."
GB, Drogheda - October 2016
"Our client owed an overall amount of €175,000 on their family home. Having restructured their account, their lender has warehoused €73,000 and customer is making repayments on €102,000. Their lender will reduce the warehoused amount by 5% for every 5 years that the customer stays in the arrangement and will potentially be reduced by about €22,000 at the end of the mortgage term."
NC, Louth - May 2017
"Our client came to us with only a small level of Arrears of €5k but his bank had been threatening Legal Proceedings. Today, we had what we feel, was a breakthrough with the notoriously difficult to deal with, PEPPER MORTGAGES/SHORELINE. They were seeking a monthly repayment of €768 and agreed today to accept a more affordable €540 per month.
TM, Louth - January 2017
"Our client came to us having not paid her mortgage in almost six years. Due to a change in circumstances, she is now in a position to start making repayments and following the submission of her SFS by The Financial Foundation to her lender, they have accepted her offer, capitalising her arrears and she can move forward with a monthly repayment that is working out less than paying rent!"
DM, Louth - November 2016
"Our clients came to us with Arrears of €65k and facing constant court adjournments. Before the account was restructured, the bank was looking for a monthly payment of €1377 per month. Following an interest rate reduction and term extension, this family of 6 are now safe in their home with a monthly repayment of €652. We're also expecting this case to be struck off by the courts."
AMcC, Louth - October 2016
"Our client came to us as he was €21k in arrears and facing repossession of his home. The bank was seeking a payment of €610 per month which our client could not afford. Mortgage has now been restructured to a monthly repayment of €395 and his case is to be struck off with no more pending court dates."