The single most important thing is to keep co-operating: answer letters and fill in the Standard Financial Statement. Being classed as non-cooperating removes the 8-month protection. MABS will help you for free.
Quick facts
- First letter
- When arrears reach 31 days
- Updates
- Every 3 months
- Free accountant
- Lender pays €250
- Appeal
- At least 20 business days to lodge it
- Before repossession
- At least 8 months if you co-operate
What MARP is
"The Consumer Protection Code states that lenders must operate a Mortgage Arrears Resolution Process (MARP) when they are dealing with you if you are in arrears and pre-arrears." Pre-arrears means you are at risk of falling behind.
The protections stay with the loan even if it is sold to a fund. "Note: If your lender sells your mortgage to an unregulated firm, MARP and the other protections must still be followed, as these protections stay with the loan."
The four steps
- Communication: at 31 days behind, a written statement of your arrears, then an update every 3 months
- Financial information: you fill in a Standard Financial Statement, and the lender must offer to help
- Assessment: the lender's Arrears Support Unit looks at your full circumstances
- Resolution: the lender must explore alternative repayment arrangements
What the lender can offer
- Interest only, or interest and part of the capital, for a time
- A lower interest rate, permanently or for a time
- Deferring repayments
- A longer mortgage term
- Adding arrears to the loan
- Parking part of the mortgage (a split mortgage)
- Reducing the principal
Any offer must come with a clear written explanation. "Your lender will pay €250 for a consultation with an accountant of your choice drawn from a panel of members of recognised accountancy bodies."
If you don't agree
You can appeal to the lender's Appeals Board if you reject an offer, get no offer, or are classed as non-cooperating. "You have at least 20 business days from the date you receive notification of the ASU's decision to consider making an appeal."
The Board has 40 business days to decide. After that you can go to the Financial Services and Pensions Ombudsman.
Before any repossession
"If you are cooperating with your lender, they must wait at least 8 months from the date your arrears were classified as a MARP case before applying to the courts to repossess your property."
A lender can only visit your home unannounced in limited cases, with at least 5 business days' notice, and you can choose to meet at its office instead.
Free help
MABS offers free, independent advice and runs the Abhaile scheme, which adds free insolvency, accountant and solicitor vouchers. Ring 0818 07 2000.
If the mortgage can't be saved, ask about Mortgage to Rent, which lets you stay in the home as a social housing tenant.
Common questions
What is MARP?
The Mortgage Arrears Resolution Process: the steps every regulated lender must follow when you are in arrears or at risk of arrears on your home mortgage.
How long before a bank can repossess in Ireland?
If you co-operate, the lender must wait at least 8 months from when your arrears became a MARP case before applying to court. That protection is lost if you are classed as non-cooperating.
Does MARP still apply if my mortgage is sold to a vulture fund?
Yes. MARP and the other protections stay with the loan, even if it is sold to an unregulated firm.
Will my lender pay for financial advice?
Yes. Your lender will pay €250 for a consultation with an accountant from a recognised panel.
How long do I have to appeal my lender's decision?
At least 20 business days from getting the decision. The Appeals Board must decide within 40 business days.