MARP stands for the Mortgage Arrears Resolution Process. It is a system devised by the Central Bank of Ireland which requires all lenders (Banks and Funds) to adhere to a process for Borrowers who fall into arrears with their mortgage.
During the MARP process a lender may not institute legal proceedings against a Borrower.
STEP 1 – All about Co-Operation
To be protected by MARP you must be a Co-Operating borrower. This means that you must supply the lender with a Standard Financial Statement (SFS) and supporting documentation. This form is available on-line or from your lender and care should be taken in filling it out.
Once you have supplied a SFS you are protected.
STEP 2 – Lender carries out an assessment
The lender will consider your SFS (Standard Financial Statement) and from that consideration will propose a resolution if that is possible. To begin with the lender will propose a short-term solution (usually 3-6 months). There are a variety of short term solutions that can be proposed by the lender that will involve the borrower being required to pay as much as they can pay.
STEP 3 – Offer of Resolution
Offers of resolution on your mortgage arrears may include:
- Paying interest only, or interest and part of the capital, for a period
- Permanently or temporarily reducing the interest rate
- Deferring repayments (or part) for a period
- Extending the mortgage term
- Changing the type of mortgage
- Adding mortgage arrears and interest to the principal
- Warehousing part of the mortgage (including through a split mortgage)
- Reducing the principal
- A “deferred interest” or other voluntary schemeWhere the lender determines the debt to be unsustainable they may commence enforcement proceedings.
STEP 4 – Appeal
There is a right to appeal any decision made by the lender through an appeals system within the mortgage lenders process. From there an appeal can be made to the Financial Services Ombudsman.
Have any questions? Our expert team at New Beginning can help answer your questions.
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