information for accbank mortgage holders
Important information on mortgage arrears
This is important information which is applicable only where your loan/account is secured by your Principal Private Residence.
An outline of what happens if you fall behind on your mortgage payments.
It is never easy to think about financial difficulties. However, if times are tight and you find yourself in danger of falling behind on your mortgage repayments, it’s important to know what to do. This leaflet outlines what you should do if this happens, what to expect from us at ACCBank and how we can work together to safeguard your home and re-establish your financial stability.
What are mortgage arrears?
A mortgage is where you, the borrower, pledge your family home as security for a loan from a financial institution, such as ACCBank. A mortgage arrears problem arises as soon as you fail to make a mortgage repayment by the due date. We recognise that due to changes in a person’s financial circumstances, arrears problems can arise during the lifetime of a mortgage.
If you fall behind on your mortgage payments
What you should do
1. Talk to us – you have a responsibility to tell us about any problems you are having with repayments as soon as possible. The sooner we talk about the problem, the sooner we can examine your individual circumstances and agree an appropriate plan to clear the arrears. Contact details for each of our offices are available here.
2. Keep to the revised repayment agreement – it is your responsibility to keep to any revised repayment agreement we make. If you are having problems, it is essential that you tell us immediately. Keeping in contact helps both of us to manage the situation more effectively.
3. Seek independent advice – we recommend you review your budget to ensure your income is being maximised to its potential. We would urge you to take independent professional advice where necessary. Services such as those provided by your accountant, financial advisor and the Money Advice and Budgeting Service (MABS) can be useful in this regard.
What we will do
1. Talk to you – it is ACCBank policy to communicate promptly and clearly with you so that we can work out why your repayment was missed and how the arrears problem can be resolved. Here is what you can expect from us in correspondence, stage by stage:
a) First missed repayment: We will send you a letter outlining the unpaid amount and the applicable surcharge interest. We may also call you on the telephone if we think it’s necessary. Ideally at this stage, we will agree a repayment plan that will get you back on track.
b) Arrears unpaid: If the arrears continue, we will send you a second letter, call you on the telephone or arrange a meeting with you.
c) Arrears continue to be unpaid: If the arrears continue, we may send you a third letter telling you that your case may be referred to our Credit Special Asset Management Unit.
2. Employ an external debt collection agency – in certain circumstances where three repayments have been missed, we may employ an external debt collection agent to act on behalf of the bank.
3. Take legal action – unfortunately, some situations deteriorate to the point where legal action is needed. Under normal circumstances, we do not seek repossession of the property until every reasonable effort has been made to agree an alternative repayment schedule with you. Irrespective of how the property is repossessed and disposed of, you will remain liable for the outstanding debt, including any accrued interest, charges, legal, selling or other related costs.
If you continually break repayment arrangements
• You will be at risk of losing your home if you fail to make your mortgage repayments on an ongoing basis.
• Your credit rating may also be adversely affected.
Other useful information for mortgage holders
The Financial Regulator issued a Code of Conduct on Mortgage Arrears on 27 February 2009. The Code of Conduct on Mortgage arrears applies to mortgage lending activities to consumers in respect of their Principal Private Residence and is available here.
In September 2009, the Money Advice and Budgeting Service in conjunction with the IBF developed an Operational Protocal: Working Together to Manage Debt. ACCBank has subscribed to this protocol and it is available here.
In November 2009, the Irish Banking Federation (IBF) published a Statement of Intent as a further reassurance to homeowners who find themselves genuinely unable to maintain mortgage repayments on their principal private residence. ACCBank have agreed to and support the IBF Pledge to Homeowners and it is available to read here.
For more useful information and general guidance for mortgage holders who may be experiencing financial difficulties, check out www.helpinghomeowners.ie which has been developed by the IBF.
This is important information which is applicable only where your loan/account is secured by your Principal Private Residence.
An outline of what happens if you fall behind on your mortgage payments.
It is never easy to think about financial difficulties. However, if times are tight and you find yourself in danger of falling behind on your mortgage repayments, it’s important to know what to do. This leaflet outlines what you should do if this happens, what to expect from us at ACCBank and how we can work together to safeguard your home and re-establish your financial stability.
What are mortgage arrears?
A mortgage is where you, the borrower, pledge your family home as security for a loan from a financial institution, such as ACCBank. A mortgage arrears problem arises as soon as you fail to make a mortgage repayment by the due date. We recognise that due to changes in a person’s financial circumstances, arrears problems can arise during the lifetime of a mortgage.
If you fall behind on your mortgage payments
What you should do
1. Talk to us – you have a responsibility to tell us about any problems you are having with repayments as soon as possible. The sooner we talk about the problem, the sooner we can examine your individual circumstances and agree an appropriate plan to clear the arrears. Contact details for each of our offices are available here.
2. Keep to the revised repayment agreement – it is your responsibility to keep to any revised repayment agreement we make. If you are having problems, it is essential that you tell us immediately. Keeping in contact helps both of us to manage the situation more effectively.
3. Seek independent advice – we recommend you review your budget to ensure your income is being maximised to its potential. We would urge you to take independent professional advice where necessary. Services such as those provided by your accountant, financial advisor and the Money Advice and Budgeting Service (MABS) can be useful in this regard.
What we will do
1. Talk to you – it is ACCBank policy to communicate promptly and clearly with you so that we can work out why your repayment was missed and how the arrears problem can be resolved. Here is what you can expect from us in correspondence, stage by stage:
a) First missed repayment: We will send you a letter outlining the unpaid amount and the applicable surcharge interest. We may also call you on the telephone if we think it’s necessary. Ideally at this stage, we will agree a repayment plan that will get you back on track.
b) Arrears unpaid: If the arrears continue, we will send you a second letter, call you on the telephone or arrange a meeting with you.
c) Arrears continue to be unpaid: If the arrears continue, we may send you a third letter telling you that your case may be referred to our Credit Special Asset Management Unit.
2. Employ an external debt collection agency – in certain circumstances where three repayments have been missed, we may employ an external debt collection agent to act on behalf of the bank.
3. Take legal action – unfortunately, some situations deteriorate to the point where legal action is needed. Under normal circumstances, we do not seek repossession of the property until every reasonable effort has been made to agree an alternative repayment schedule with you. Irrespective of how the property is repossessed and disposed of, you will remain liable for the outstanding debt, including any accrued interest, charges, legal, selling or other related costs.
If you continually break repayment arrangements
• You will be at risk of losing your home if you fail to make your mortgage repayments on an ongoing basis.
• Your credit rating may also be adversely affected.
Other useful information for mortgage holders
The Financial Regulator issued a Code of Conduct on Mortgage Arrears on 27 February 2009. The Code of Conduct on Mortgage arrears applies to mortgage lending activities to consumers in respect of their Principal Private Residence and is available here.
In September 2009, the Money Advice and Budgeting Service in conjunction with the IBF developed an Operational Protocal: Working Together to Manage Debt. ACCBank has subscribed to this protocol and it is available here.
In November 2009, the Irish Banking Federation (IBF) published a Statement of Intent as a further reassurance to homeowners who find themselves genuinely unable to maintain mortgage repayments on their principal private residence. ACCBank have agreed to and support the IBF Pledge to Homeowners and it is available to read here.
For more useful information and general guidance for mortgage holders who may be experiencing financial difficulties, check out www.helpinghomeowners.ie which has been developed by the IBF.
| Warning: Your home is at risk if you do not keep up payments on a mortgage or any other loan secured on it. If your loan is a variable rate loan please note: The payment rates on this housing loan may be adjusted by the lender from time to time. If your loan is an endowment loan please note: Warning: There is no guarantee that the proceeds of the insurance policy will be sufficient to repay the loan in full when it becomes due for repayment. |
