Welcoming the initiative by Banking & Payments Federation Ireland for mortgage holders who want to switch lenders but have had credit issues in the past, Brokers Ireland, a participant in assisting those seeking to switch their mortgages said now is a good time to remind mortgage holders running into difficulty to reach out for help before falling into arrears.
“The earlier one seeks help the better because the outcome is likely to be more favourable. If you are paying some of the highest rates of interest, and if you have been in arrears you may be able to switch to one of the pillar lenders if you meet certain criteria,” Rachel McGovern, Director of Financial Services at Brokers Ireland, stated.
She said it was a positive development to see credit servicing firms working with MABS (Money Advice & Budgeting Service ) to accelerate the agreement of sustainable repayment plans.
“And of course the campaign by BPFI to highlight both new and existing arrangements is very welcome since people in financial distress over their mortgages are often frozen with fear about what the future holds for them,” she added.
Noting that in mid-June the Central Bank found that 677 further mortgage holders (not including the 1,300 accounts that were reclassified ) had fallen into early arrears of up to 90 days in Q1 2023, Ms McGovern said that several of the ECB interest rates hikes would not have taken effect at that stage.
“With worrying signals that the ECB may not yet be finished with interest rate rises, unfortunately the situation may precipitate further such arrears. Hence the importance of the measures announced today,” she concluded.
