Has anyone arranged a temporary arrangement with a lender pending a full assessment?

[Brendan Burgess]

I was not aware of Section 38 of the CCMA

38. Prior to completing the full assessment of the borrower’s standard financial
statement, a lender may agree with the borrower to put a temporary alternative
repayment arrangement in place where a delay in putting an alternative
repayment arrangement in place will further exacerbate a borrower’s arrears or
pre-arrears situation. Such a temporary alternative repayment arrangement
should be for a limited period of time but it should be sufficient to enable the
lender to receive and complete a full review of the standard financial statement.

One of the issues with stopping the Covid payment breaks is the delay in the MARP and SFS process. But according to this section, if someone can't meet their repayment this month, the lender could agree to a temporary payment break for three months to give both sides time to complete the MARP.

I have not heard of it being done.

Brendan

 

[WizardDr]

When you 3 months interest only without submission of the book of kells known as the Standard Financial Statement which causes huge levels of stress to people- that is a Provision 38 in operation.

Some fall into arrears and then seek assistance but the illiteracy of people and their mortgages is pretty high,