A NEW INFORMATION and awareness campaign has been launched for customers who are concerned about mortgage repayments due to cost of living pressures.

It’s being rolled out this week by the country’s retail banks, non-bank lenders and credit servicing firms, in association with Banking & Payments Federation Ireland (BPFI) and with support from the Money Advice and Budgeting Service (MABS).

As part of the campaign, the BPFI has launched a new online resource DealingWithDebt.ie.

It provides information for customers on the best action to take if they are experiencing financial difficulties that may impact their ability to meet their mortgage or other repayments, such as credit cards and personal loans.

The website also details key contacts for all lenders and credit servicing firms, in addition to independent consumer support bodies.

The resource will be supported by a nationwide advertising campaign.

In addition to today’s campaign launch, the BPFI and MABS have announced the expansion of their joint framework agreement to include all customers from the pre-arrears stage through to late-stage arrears.

The BPFI-MABS Framework Agreement for Late-Stage Mortgage Arrears was developed in 2017 to help resolve mortgage arrears for borrowers who have already gone through the Central Bank’s Mortgage Arrears Resolution Process (MARP) and are entering or are about to enter the legal process.

Supported by the retail banks and credit servicing firms, and in light of the current cost of living pressures, the framework agreement has now been expanded to include mortgage customers across all arrears categories, including those who are pre-arrears. 

Brian Hayes, chief executive of the BPFI said that “with the increased cost of living, as well as recent rises in interest rates, many households are coming under increased financial pressure”.

However, he noted that “members are not seeing any trends that would indicate a cause for concern in the numbers of arrears cases currently presenting”.

He added that the “key message” for those who are “worried or struggling with their mortgage repayments or other payments” is to contact your bank or financial services provider as soon as possible or a trusted third party such as MABS.

“Irish banks have the widest set of solutions available to mortgage customers in difficulty across Europe and have been involved in restructuring over 100,000 mortgages in the past ten years,” said Hayes.

“They have highly experienced teams who can explain all the options available and work with customers to find a sustainable solution for those who may be in difficulty.”

Hayes noted that the latest Central Bank figures show that more than 60,000 home mortgages were in a restructuring arrangement by the end of last year and more than 88% of these are meeting the terms of their current agreements.

“This clearly shows that many customers in financial difficulty are working with their providers and being supported through alternative arrangements,” said Hayes.

Michelle O’Hara, who is a national spokesperson for MABS said: “While many households in Ireland are managing to juggle the current cost of living pressures, it is really important that people reach out for support before finding themselves in difficulty.”

“Although it can feel difficult to make that first step, it is really important for customers to communicate directly with their lender, or if they feel they can’t do that, I strongly encourage people to reach out to MABS.

Hayes added that the BPFI is “grateful that MABS is supporting this initiative”.

“If customers feel uncertain about contacting their provider, MABS provides free and impartial advice and support,” said Hayes.

Further information is available at www.DealingWithDebt.ie.