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.   The availability of the arrangements will depend on your individual circumstances and our assessment of your SFS.  

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.

Alternative Repayment Arrangements

Interest Only - This is where you  pay only the interest on your mortgage for a specified limited period of time. Your capital balance will not reduce during the arrangement period.  At the end of the agreed arrangement period, your mortgage repayments for the remaining term are recalculated which will result in your mortgage repayments increasing.

More than Interest Only - This is an arrangement where you pay more than Interest Only, but not as much as your normal full repayments for a specified limited period of time.  At the end of the agreed arrangement period, your mortgage repayments for the remaining term are recalculated which will result in your mortgage repayments increasing.

Moratorium - This arrangement allows you to defer paying all or part of your mortgage repayment (capital and interest) for a specified limited period of time.   If your payments are less than the interest amount due, your capital balance will increase.  At the end of the agreed arrangement period, your mortgage repayments for the remaining term are recalculated which will result in your mortgage repayments increasing.

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.  This means that your mortgage will no longer be in arrears.  Because the balance is larger, this will increase the capital and interest repayments over the total life of your mortgage.  This arrangement can be offered individually or in conjunction with any of the other arrangements available. 

Term extension - This arrangement extends the term (length) of your mortgage. This means you can reduce your monthly repayment amount and you will have a longer period of time to repay the mortgage.  This will result in you paying more interest over the life of your mortgage.  This arrangement can be offered individually or in conjunction with any of the other arrangements available.

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 for the remaining term of the mortgage. This arrangement will be reviewed on a regular basis. In the event that your financial circumstances improve, your repayments may be increased in line with your affordability.  At the end of the mortgage term, any outstanding mortgage balance will be due.  If you are not in a position to repay the outstanding mortgage in full, you will need to talk to us about the options available to you which may include lump sum payment, trading down or selling your property.

Split Mortgage - We split your mortgage into two accounts to reduce your monthly repayments: a ‘Main Mortgage Account’ and a ‘Warehouse Account’. With the Main Mortgage Account, you are required to make capital and interest repayments based on your current financial ability. With the Warehouse Account, a portion of your mortgage is deferred for a period of time until your financial ability or circumstances improve.  This arrangement will be reviewed on a regular basis. In the event that your financial circumstances improve, a portion of the ‘Warehouse Account’ will be transferred back to your ‘Main Mortgage Account’.  At the end of the mortgage term, any outstanding mortgage balance will be due.  If you are not in a position to repay the outstanding mortgage in full, you will need to talk to us about the options available to you which may include lump sum payment, trading down or selling your property.

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 do 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.

If you have any mortgage payment protection policies, we strongly recommend that you contact your Insurance Provider, as you may be able to make a claim that will help you with your mortgage payments.   

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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 1800 855 010 or 021 601 3800 - lines are open Monday to Friday 9am - 6pm (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

We do 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 Options outlined above.

More Information Make a payment to your mortgage account

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