mortgage arrears extension

Amendment to the Code of Conduct on Mortgage Arrears extending the moratorium from 6 to 12 months

The Minister for Finance, Mr. Brian Lenihan T.D., welcomes the amendment by the Financial Regulator to the Code of Conduct on Mortgage Arrears:

“I welcome today’s extension of the moratorium from 6 months to 12 months on legal repossessions for all lenders regulated by the Financial Regulator, including the so called “sub-prime lenders”.

The extension of the moratorium to 12 months is consistent with the arrangements under the recapitalisation agreement for Bank of Ireland and Allied Irish Bank.  The Financial Regulator’s decision to extend this moratorium to all the lenders it regulates is a positive response to the request in my Budget speech last December.  It is a decision that takes account of the changed circumstances facing some homeowners as a result of rising unemployment and reductions in income.”

The Minister has already set up an Inter-Departmental Mortgage Arrears Review Group for the purpose of bringing together all relevant information in Departments and examining options in relation to the matter of support for home owners facing the problems of mortgage arrears and repossessions.

The moratorium of 12 months will apply only where the borrower engages with the lender in dealing with arrears and will commence from the date the borrower first goes into arrears.

17th February 2010