What should I do if I can't pay my mortgage?

What can happen if I miss mortgage repayments?

When you take out a mortgage, your mortgage lender gets a claim on your property until you repay the loan.

If you miss a mortgage repayment, you are in mortgage arrears. If you continue to miss your repayments your lender may eventually look to repossess your home. Your lender has to apply to court to repossess your home.

If you are at risk of missing a mortgage payment, you should contact your lender as soon as possible to tell them. This is called pre-arrears.

What can happen if I can’t pay other loans and debts? 

If you don’t have a mortgage on your home, but you have other debts you can’t repay, your home can be repossessed to cover those debts.

The people you owe money to can register your debts as a 'judgment mortgage' against your home and look to recover their money that way.

Find more information about this in our pages on home repossession and dealing with problem debt.

If you are struggling to pay your mortgage, you should contact your lender immediately. Don’t put off contacting them and allow mortgage arrears to build up. This can make the problem worse.

Your lender wants you to continue making your payments. They do not want to repossess you home, this is the last option.

Rules for lenders dealing with people who can’t pay their mortgage

If you are in mortgage arrears or pre-arrears, lending institutions such as banks must follow certain rules when dealing with you. Local authorities have similar guidelines (pdf).

These rules mean that your lender must take certain steps to deal with any problems you have paying your mortgage. For example, the Central Bank’s Code of Conduct on Mortgage Arrears (CCMA) (pdf) says that lenders must have a Mortgage Arrears Resolution Process (MARP) when dealing with customers in mortgage arrears and pre-arrears.

Read more on mabs.ie/abhaile.

If you are having difficulty paying your mortgage or other loans, the Money Advice and Budgeting Service (MABS) can help. MABS is a free and confidential. You can talk to MABS:

• In a MABS office
• On the MABS helpline: 0818 07 2000 (9am - 8pm, Monday - Friday)
• By email: helpline@mabs.ie

If you are in mortgage arrears, MABS can:

• Help you fill in a Standard Financial Statement (pdf). Your mortgage lender will ask to complete this form to assess your financial situation, if you’re in mortgage arrears. It records details of your income, expenditure and debts.
• Give you information and advice about mortgage arrears through its Dedicated Mortgage Arrears service
• Advise and support you through its Court Mentor service, if you are going to court about your debt

MABS runs the Abhaile scheme for people who are in serious mortgage arrears and at risk of losing their home. This scheme provides a range of services including:

• Financial advice
• Legal advice
• Insolvency advice

Read more on mabs.ie.

There are other organisations that provide information and advice, if you can’t pay your mortgage or have other problem debt.

The Competition and Consumer Protection Commission (CCPC)

The Competition and Consumer Protection Commission’s website has:

• Information about mortgage arrears and where you can get help
• A step-by-step debt action plan for dealing with debt

Insolvency Service of Ireland

The Insolvency Service of Ireland (ISI) provides support if you have personal debt problems or are in mortgage arrears. They have a regulated network of financial advisors (called PIPs) that can give you debt advice and help you work with your creditors to find a solution.

Free Legal Advice Centres (FLAC)

If you need legal advice on your options and on what happens if the mortgage lender takes steps to repossess your home, FLAC provides free legal advice from a nationwide network of voluntary advice centres. Some FLAC services are based in Citizens Information Centres.

The Legal Aid Board

The Legal Aid Board provides legal advice, if you cannot afford a solicitor. There is a means test to qualify for this.

It has a panel of solicitors that provide legal aid and advice to people who are at risk of losing their home and are referred by MABS. This is part of the Abhaile scheme

The Legal Aid Board also operates a duty solicitor service that provides limited court support if you are an insolvent borrower in repossession proceedings. These services are available for free using a voucher system.

The Irish Mortgage Holders Organisation (IMHO)

The Irish Mortgage Holders Organisation (IMHO) is a not-for-profit organisation that offers services including:

• Debt advice
• Negotiation with lenders
• Insolvency advice
• Bankruptcy advice