Mortgage Arrears in Ireland: Your Options and Rights
If you are struggling to pay your mortgage in Ireland, you have more options than you may realise. Understanding the process and acting early gives you the best chance of finding a sustainable solution.
The Mortgage Arrears Resolution Process (MARP)
Under Central Bank of Ireland rules, lenders must follow the Mortgage Arrears Resolution Process before taking any legal action. MARP requires lenders to communicate with borrowers in difficulty, assess their financial situation, and consider alternative repayment arrangements before commencing repossession proceedings.
Alternative Repayment Arrangements
Your lender must consider a range of options including: extending the mortgage term to reduce monthly payments, switching to interest-only payments temporarily, capitalising arrears into the outstanding balance, a moratorium (temporary payment pause), and mortgage-to-rent (remain in the property as a social housing tenant).
The Abhaile Scheme
The Abhaile scheme provides free financial and legal advice to borrowers in mortgage arrears on their primary home. Through Abhaile, you can access a personal insolvency practitioner and a solicitor at no cost. This is one of the most valuable and underused resources available to Irish borrowers in difficulty.
Voluntary Surrender
Handing back the keys — formally known as voluntary surrender — is rarely the best option. If the property sells for less than the outstanding mortgage, you remain liable for the shortfall as an unsecured debt, which a lender can pursue for up to 12 years.
Frequently Asked Questions
Can a lender repossess my home without a court order in Ireland?
No — a lender cannot repossess a principal private residence without a court order. The court process gives you the opportunity to bring arrears up to date or agree alternative arrangements before an order is made.
How long does mortgage repossession take in Ireland?
Mortgage repossession through the courts is a slow process in Ireland, typically taking several years. Lenders must exhaust the MARP process before commencing repossession proceedings.
What is the Abhaile scheme?
Abhaile provides free financial and legal advice to owner-occupiers in mortgage arrears on their primary home. It is administered by MABS and provides access to both a personal insolvency practitioner and a solicitor at no cost.
This article is for informational purposes only. If you are struggling with your mortgage, contact MABS or a solicitor.
