The Financial Regulator has informed all mortgage lenders that from February 17th, they must wait at least 12 months from the time a borrower falls into arrears before they start a legal action.
The regulator extended the moratorium on legal action from six to 12 months after Minister for Finance Brian Lenihan asked for the measure to be examined in the December budget to help those struggling with their mortgages. “The 12-month requirement does not apply where the borrower is deliberately not engaging with the lender,” the regulator said in a statement.
“Lenders should only seek repossession in less than 12 months in very exceptional circumstances and when all reasonable attempts to encourage engagement by the borrower have failed.”
The changes are being made in an amendment by the regulator to the statutory code of conduct on mortgage arrears.
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