Danske Bank, in line with the Central Bank of Ireland's Code of Conduct on Mortgage Arrears, has introduced a four step Mortgage Arrears Resolution Process (MARP) to help customers who are having challenges in meeting their mortgage repayments now or who feel they may have difficulty meeting their mortgage repayments in the future.
The MARP only applies if the mortgage relates to your primary residence or a residential property in the Republic of Ireland which is the only residential property you own.
See below for the 4 simple steps to help you with your mortgage in challenging times or read the full brochure on our Mortgage Arrears Resolution Process.
- Communication / Talk to us
The most important step is to talk to Pepper Asset Servicing as early as possible, whether you have had trouble meeting mortgage repayments or are concerned that difficulties may arise in meeting your repayments in the future; we are here to help and will do everything we can to help you get back on track. One of our dedicated advisors will be happy to meet you or talk to you over the phone – together we can try to find a way to make things more manageable. Our advisors can be contacted on our dedicated phone line below - calls will be recorded in line with our regulatory requirement to do so. Telephone 1890 923 346 (or +353 61 236 852 if outside the Republic of Ireland).
Pepper Asset Servicing are committed to discussing your financial difficulties with you as early as possible and to ensuring that the level of communications between us is supportive and proportionate, taking your specific circumstances into consideration. We will give you sufficient time to complete any actions agreed between us.
- Financial information / Understanding your finances
When you talk with Pepper Asset Servicing, they will help you complete a full review of your financial situation using a Standard Financial Statement (SFS). This will help Pepper Asset Servicing to work out a picture of your finances. Before we can do this it would be useful if you could prepare a budget that shows what you are being paid and all your expenditures including all other loans and financial commitments. Before you complete the SFS, please read the Central Bank document Mortgage Arrears - A Consumer Guide to Completing a Standard Financial Statement. You may wish to seek independent advice when completing the SFS, such as from your local Money Advice & Budgeting Services (MABS) office. www.mabs.ie, www.keepingyourhome.ie
Pepper Asset Servicing will require the following additional information to be provided along with a completed Standard Financial Statement :
- Your current account statements for the last 3-6 months (if Danske Bank is not your main Bank)
- Your account statements for Credit Card Accounts and Loan Accounts held in other financial institutions for the last 6 months
- Proof of benefits
- Most recent 3 months payslips
- Details of your pension (other than State pension)
If you are self employed, you will also need to provide the following :
- Most recent audited accounts
- Up to date Management Accounts
- Bank statements for your business (last 6 months)
- Accountant's letter of confirmation that tax affairs are up to date
You may wish to seek independent advice when completing the SFS, such as from your local Money Advice & Budgeting Services (MABS) office.
Once Pepper Asset Servicing have a full picture of your finances, one of the advisors in their dedicated Arrears Support Unit will look at your financial situation on a case by case basis. They will then work with you to see what the best options for helping to get you back on track.
Pepper Asset Servicing will take the following factors into consideration when assessing your position :
- your income and expenditure, including surplus income available to repay your home loan
- your level of overall indebtedness and repayment history
- your projections and any future changes that may impact on your mortgage repayment
When reviewing your home loan with you, Pepper Asset Servicing will consider the following alternative repayment arrangements with the aim of arriving at a mutually agreeable outcome. The availability of the following alternative repayment arrangements will depend on your individual circumstances and their assessment of the information provided by you to them.
Temporary Term Forbearance arrangements (normally up to 12 months)
- Interest only payments – where you only pay the full interest on your mortgage for a period of time
- Interest and part capital payments - where you pay the full interest and a reduced amount of capital
- Payment moratorium – where you suspend your full payment for a period of time
- Temporary Interest Rate reduction – where the interest rate on your home loan (for non tracker mortgages) can be reduced for a short period of time
- Amending your mortgage to a different type - for example changing form a variable rate to a fixed rate, which may make budgeting easier
When a short term forbearance arrangement has been agreed Pepper Asset Servicing undertake to review it with you at any time on your request or at least every 6 months.
Long Term Arrears Management Solutions
- Trade Down Mortgage – where you sell your existing home and trade down to a lower value property. Under this arrangement, part of the negative equity can be incorporated into your new home loan or "warehoused" until your financial position improves. This will reduce your monthly repayment amount
- Term Extension – where the term of your home loan is extended. This will reduce your monthly repayment amount
- Permanent Interest Rate Reduction – where the interest rate on your home loan (for non tracker mortgages) can be reduced for a period of time
- Mortgage To Rent – where you transfer ownership of your home to a Housing Association and in turn enter into an arrangement where you pay an affordable rent to the Housing Association. Under this arrangement, you remain responsible for the repayment of any outstanding balance on your mortgage, after the Housing Association has purchased your home
- Capitalising the interest and arrears – this may often be arranged in conjunction with another long term solution
When a long term solution has been agreed Pepper Asset Servicing undertake to review it with you at any time on your request or at least every 12 months.
- Pepper Asset Servicing do not apply additional charges or surcharge interest to mortgage customers who are in arrears, provided that you are co-operating with us
- If a reduced payment or a payment moratorium is agreed this may increase the term of the mortgage and the overall amount of interest paid
- If part of your home loan is "warehoused", interest will not accrue on this warehoused balance and only the warehoused balance will become payable at the end of the loan period
- Pepper Asset Servicing may report any arrears on your mortgage or loan to the Irish Credit Bureau and any credit reference agency, where permitted by contract or required by law. This may affect your credit rating, which may limit your ability to access credit in the future. If you enter into an alternative repayment arrangement with us, this may also affect your credit rating, which may limit your ability to access credit in the future
- Your home loan, including any "warehoused" part thereof will remain secured by the mortgage provided by you to us
- If you have a tracker home loan account we will not require you to change it to another mortgage type as part of an alternative repayment arrangement
- Any interest rate reduction agreed will be subject to an annual review of your financial circumstances
- If you enter into an alternative repayment arrangement, such as Term Extension you should check if your mortgage protection cover is still suitable. You should continue to insure your home
If Pepper Asset Servicing are unable to enter into an alternative repayment arrangement with you, the following options may be open to you:
- Voluntary surrender of your home to Pepper Asset Servicing on behalf of Danske Bank
- Voluntary sale of your home
Under either of these arrangements, you remain responsible for the repayment of any outstanding balance on your mortgage and associated costs, after your home has been sold.
The availability of options such as voluntary surrender, voluntary sale, trade down mortgage or mortgage to rent will depend on your individual circumstances. The availability of the mortgage to rent option will also be subject to an assessment process as well as the applicant being eligible for Social Housing Support in the local authority in whose area their property is allocated and approval of the property by the relevant Housing Association.
Where Pepper Asset Servicing requests you to provide the information outlined above and you fail to do so within 21 business days and without reasonable explanation, you shall be deemed to be not co-operating.
If you are deemed to be not co-operating with Pepper Asset Servicing in relation to the arrears on your mortgage account, this will have a number of implications for you, including that:
- you will be considered outside the scope of the Mortgage Arrears Resolution Process (MARP) and the protections of the MARP will no longer apply
- charges or surcharge interest on arrears may arise on your mortgage account
- we will become entitled to commence legal proceedings for repossession of your home; and
- it may negatively affect your eligibility for a Personal Insolvency Arrangement in accordance with the Personal Insolvency Act 2012
Should Pepper Asset Servicing be forced to repossess your home, their intention would be to sell the property with a view to recouping the arrears owing to Danske Bank and the total amount outstanding under your mortgage loan, including accrued but unpaid interest, charges, legal, selling and other costs. Should any of these amounts remain outstanding following the sale of your home, you will remain liable to Danske Bank for any outstanding debt.
If you are unhappy with the decision of the Arrears Support Unit in relation to your alternative repayment arrangement or with Pepper Asset Servicing decision to classify you as Not Co-operating, you can submit an appeal in writing to our Appeals Board at the following address within 21 business days of receipt of the decision;
Danske Bank Appeals Board
PO Box 12548
If you do not believe we have been compliant with the Code of Conduct on Mortgage Arrears or have not treated your case fairly, you can submit a complaint to;
Customer Service Standards
PO Box 689
Following this if you are unhappy with the decision of the Appeals Board or the manner in which your complaint has been handled by Customer Services Standards, you have the right to refer the matter to the Financial Services Ombudsman at:
Telephone 1890 882 090 or 01 662 0899