Alternative Repayment Arrangements


What are the different Alternative Repayment Arrangements that may be offered to me?

As part of the MARP, we have a number of Alternative Repayment Arrangements that may be suitable for you depending on your individual circumstances.  

Below you will find more information on the alternative repayment options that may be offered to you and what options are available to you where we are unable to agree an alternative repayment arrangement with you.

Short Term Arrangements

Interest Only - This is where you only pay the interest on your mortgage for a specified amount of time. This option is also referred to as a “Capital Payment Holiday”.

Warning: Your current capital balance will still be outstanding at the end of the interest-only period.

More than Interest Only - This is an arrangement where you pay slightly more than Interest Only, but not as much as your full repayments which is called “Capital Payment Holiday Plus”.

Less than Interest Only - Another arrangement, is where you pay slightly less than Interest Only, which is called “Capital Payment Holiday Minus”.

Warning: Arrears will continue to grow during a Capital Payment Holiday Minus treatment.

Moratorium - This arrangement allows you to defer paying all or part of your mortgage repayment for a period of time. For example, this might be suitable if you have a temporary shortfall of income.

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Long Term Arrangements

Capitalisation - If appropriate, your outstanding arrears may be added to the remaining capital balance, allowing you to repay them both over the life of your mortgage.

Term extension - This arrangement extends the term (length) of your mortgage. This means you can reduce your monthly repayment amount by extending the term of your mortgage.

Part Capital and Interest Arrangement - This arrangement allows you to pay the full interest on your mortgage as well as make repayments towards your mortgage balance. At the end of the mortgage term, the outstanding mortgage balance will be due.

Split Mortgage - We split your mortgage into two accounts to reduce your monthly repayments: a ‘Main Mortgage Account’ and a ‘Warehouse Account’. You do not repay the balance of the Warehouse Account until the end of the mortgage term. This means your monthly payments will be lower than they currently are, in line with what you can afford to pay over time. However, you will owe the full outstanding balance on this Warehouse Account at the end of the mortgage term.

Warning: Variable rate - the cost of your monthly repayments may increase.

Warning: If you do not meet the repayments on your loan, your account will go into arrears. This may affect your credit rating, which may limit your ability to access credit in the future.

We cannot and would not forgive arrears or loan balances; however, we can help you to deal with financial challenges in a way that makes sense for all.

It is important that you seek independent legal and financial advice in relation to the Alternative Repayment Arrangements outlined above.

We strongly recommend that you review your existing policies with your Life Assurance Provider(s) to ensure they adequately cover the revised terms of your mortgage. In the event that your policy has lapsed, you should, in your own interest, arrange suitable cover.

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What happens if we are unable to agree an alternative repayment arrangement with you?

Where we are unable to agree an alternative repayment arrangement with you and depending on your individual circumstances, the options detailed below may be available to you. The availability of any one of these options is subject to an assessment of your individual circumstances and meeting appropriate qualifying criteria (ours or a third party).

Voluntary Sale - You may consider that the best option for you is to sell your property. Selling your property will enable you to use the proceeds from the sale to clear your outstanding arrears (if any) and repay, or significantly reduce, your mortgage balance.

Negative Equity Trade Down - This means that you trade down to a lower value property. Following the sale of your existing property, the funds are then used to pay off your arrears and reduce the remaining mortgage balance. The cost of your new property and any shortfall from the sale of your existing property becomes your new mortgage.

Voluntary surrender - If you decide to surrender the property, you should contact us on 1890 66 44 33 or +353 21 601 3801 - lines are open Monday to Friday 9am - 8pm (excluding bank holidays) and Saturdays 9am - 1pm for information on the voluntary surrender process.

If you do surrender the property, permanent tsb will take it into possession and then place the property on the open market for sale. permanent tsb will appoint a Selling Agent who will endeavour to obtain the best possible sale price for the property. We will use the proceeds of the sale to clear your mortgage arrears (if any) and to repay or reduce your outstanding mortgage balance.

Mortgage To Rent - The Mortgage To Rent option is a State assisted scheme where you agree to sell your property to an Approved Housing Body and the Approved Housing Body allows you to remain in your property, as a tenant paying rent to the Approved Housing Body. Full suitability for this option is subject to set criteria agreed under the scheme.

For more information on how to qualify for the Mortgage To Rent Scheme please visit http://www.housingagency.ie

More Information Make a payment to your mortgage account

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