THE Central Bank told mortgage holders in trouble to talk to their lenders as soon as possible after a new survey suggests most of troubled lenders manage to get some sort of deal.
A survey by the Central Bank showed that a majority of people in trouble got a new borrowing agreement when they contacted their lenders using the existing Code of Conduct on Mortgage Arrears.
The bank’s survey showed that three quarters of mortgage borrowers were happy with their experiences after trying to talk to lender about mortgage arrears.
The figures were revealed today following the publication of research into how the Code of Conduct on Mortgage Arrears operates in practice.
Around three quarters indicated that their lender had not been professional in its dealing while two thirds said the lenders had been helpful.
The survey also found that 71pc of borrowers who used the code of conduct had entered into an alternative arrangement with their lender as a result.
Around one in ten borrowers has used the code’s appeals process and 60pc of the appellants said that they had successfully negotiated a more suitable or sustainable arrangement.
The code “provides important protections for borrowers as they go through the process of addressing their mortgage arrears situation with their lender,” said Central Bank official Bernand Sheridan. “It is clear from our on-going mortgage arrears work that borrowers who engage early and meaningfully with their lenders get the best possible outcomes and benefit from the full protections that the code provides.”