Mortgage Options Brochure (pdf) - Permanent TSB

Mortgage options
for homeowners in challenging times

Making
mortgage
repayments
a little more
manageable…

Our customer
promise
At permanent tsb we know that our customers
actively seek to avoid falling behind with their mortgage
repayments. However, in these diffi cult economic times
we understand that falling into arrears can happen. So if
you have missed a mortgage repayment(s), or if you fear
that you may miss a repayment over the coming months,
then please talk to us.
This booklet sets out details of our ‘Mortgage Arrears
Resolution Strategy’. It outlines the steps we take to help
customers who are experiencing diffi culties, or customers
who fear they may encounter diffi culties, in making their
monthly repayments. As you will see we have a range of
short and long term options designed to suit individual
circumstances and needs.
We can not and would not forgive arrears or loan balances;
however, we can help you to deal with fi nancial challenges
in a way that makes sense for all.
Our commitment to you is this: we will work with you to
fi nd a way to help you manage your cash fl ow so that you
can meet your fi nancial commitments.
So if you have fallen behind with your repayments, or if
you are worried that you might do, talk to us before a small
problem becomes a big one. We will work with you to
make things better.
Jeremy Masding
Group Chief Executive
permanent tsb Group

Mortgage options
for challenging
times...
We have put in place a Mortgage Arrears Resolution
Process to help our home loan customers in mortgage arrears
or those who are at risk of going into arrears. This process
forms part of our commitment under the Code of Conduct on
Mortgage Arrears as published by the Central Bank of Ireland.
How we can help…
We have dedicated Mortgage Advisors available to work with you if
you are facing problems with your mortgage or if you are worried that
problems may soon arise.
To help us get a full understanding of your individual circumstances,
we will ask you to fi ll out a Standard Financial Statement. You can
download it from www.permanenttsb.ie or just call us on any of the
numbers at the back of this booklet and we will post a copy out
to you. If you need any help completing your Standard Financial
Statement, drop into your local permanent tsb branch.
When we receive your completed Standard Financial Statement, our
dedicated Arrears Support Unit will review your details with a view to
providing you with options suitable to you. We will then communicate
the outcome of the assessment directly to you.
You might feel it appropriate to seek professional independent advice
to assist you at this stage if you have not already done so. In addition,
we would advise you to consider contacting the Money Advice and
Budgeting Service (MABS) on 1890 283 438 (Mon-Fri, 9am-to
8pm) or visit www.mabs.ie or www.keepingyourhome.ie
4

Getting you back on track…
your options
The alternative repayment arrangements that may be offered will
vary from case to case. Here are some examples of the options
that may be available:
Interest Only
This is where you pay only the interest on your mortgage for a specifi ed amount of
time. This option is also referred to as a “Capital Payment Holiday”.
Warning: Your current capital balance will still be outstanding at the
end of the interest-only period.
Interest and Part Capital
You can change to paying interest and some capital. This option allows you to pay
the interest on your mortgage, as well as some of the capital of the original amount
borrowed. This option is also referred to as a “Capital Payment Holiday Plus”.
Moratorium
This option allows you to defer paying all or part of your mortgage repayment for a
period of time. For example, this might be suitable if you have a temporary shortfall
of income.
Term Extension
You can change the term or length of your mortgage. This means you can reduce
your monthly repayment amount by extending the length (term) of your mortgage.
Arrears Repayment Plan
If you have some extra money at the end of the month you can opt for the Arrears
Repayment Plan, temporarily paying an increased monthly repayment which will be
used to clear your mortgage arrears.
Product Change
This option may be applicable if another type of mortgage is better suited to you. For
example, you could change from a fi xed rate mortgage to a variable rate mortgage.
Fixed rate
Warning: You may have to pay charges if you pay off a fixed-rate loan early.
Variable rate
Warning: The cost of your monthly repayments may increase.
5

Trade Down
This is where you trade down into a lower value property. The funds from the sale
of your existing property are then used to pay off your arrears and reduce the
remaining mortgage balance. Your new mortgage will be for the cost of your new
property and any shortfall from the sale of your existing property.
Partial Ownership
The Bank essentially buys a portion of your property based on the current market
price and reduces the mortgage amount you owe us by this amount. As your
circumstances improve, you buy some or all of this portion back from us based on
the market price at that time. As you pay legal costs each time, you can only buy
back portions of the property in large amounts.
Split Mortgage
We split your mortgage into two accounts to reduce your monthly repayments. You
make interest only payments on the “warehouse” account at a reduced rate and
you continue to pay the full capital and interest payments on the other portion at the
rate applicable at that time. As your circumstances improve, you pay the outstanding
money owed on this second (warehouse) account.
Mortgage to Rent
You voluntarily surrender your property to the Bank and we then sell the property to
a housing association who rent it back to you. This means that while you no longer
own your property you can continue living in your home as a tenant. The change in
your status from owner to tenant is kept confi dential.
Capitalisation
You can add your outstanding arrears to the remaining capital balance and repay
them both over the life of your mortgage.
Some important things to notes:
We may not always offer you an arrangement – this will depend on your circumstances.
In this case, we will contact you to outline the options that are available to you.
Home loan customers will not be required to change from an existing tracker mortgage
to another mortgage type.
The repayment options outlined here may result in you paying additional interest on your
mortgage over the term of the loan.
An overdue balance on your accounts may have a negative effect on your credit rating.
This, in turn, may reduce your ability to get loans in the future.
Warning: If you do not meet the repayments on your loan, your
account will go into arrears. This may affect your credit rating, which may
limit your ability to access credit in the future.
6

Our appeals process
We are committed to providing you with the highest
standard of service. We hope that you never have any
reason to raise an appeal with us, but if you do, we want to
hear from you so we can address your concerns as quickly
and as fairly as possible.
You have a right to appeal:
• our decision on your request for an alternative repayment arrangement;
• our treatment of your case within the Mortgage Arrears Resolutions Process;
• if you feel we are not complying with the Code of Conduct on Mortgage Arrears.
You can appeal any time up to 22 business days from when you receive the letter
explaining permanent tsb’s decision. The appeal letter should be sent in writing to:
The Appeals Board,
c/o Customer Relations Department,
permanent tsb,
Church Yard Lane,
Douglas, Cork.
If you are unhappy with the outcome of
your appeal, you may refer the matter
to the Financial Services Ombudsman
for arbitration. The Ombudsman is an
independent adjudicator whose services
are available free of charge to customers.
Contact details for the Financial
Services Ombudsman can be found at
the back of this booklet.
7
We also recommend
that you….
1. Check if you are eligible to
receive State support such as a
Mortgage Interest Supplement.
(See Department of Social
Protection contact details at the
back of this booklet.)
2. Ensure that your Home
Insurance and Life Assurance
are in place to cover your loan
commitments at all times.

What’s next?
Please complete and sign the Standard Financial Statement
which is available to download from
www.permanenttsb.ie/mortgages.
Alternatively, call us on any of the contact numbers listed at
the back of this booklet and we will be happy to post a form
out to you.
Then just contact your local permanent tsb branch to
make an appointment with the local Mortgage Advisor.
What we need from you
If you are seeking an alternative repayment arrangement, you and all customers on the
mortgage must provide:
• Three months of your most recent bank statements for your main current account.
• Proof of your income: two recent payslips, your most recent P60, and any receipts
for Social Welfare, Mortgage Interest Supplement and Family Income Supplement
payments.
• Six months of your most recent business bank account statements if you are selfemployed,
and one of the following forms of proof of your income:
a) A letter from your Accountant confi rming your current year earnings or;
b) A copy of your most recent tax balancing statement setting out your income for
that tax year.
The bank reserves the right to seek additional information, including fi nancial
accounts, as appropriate.
8

Helping you though
diffi cult decisions
We want to do everything we can to help customers who
are facing mortgage arrears. However, there may be
circumstances where your mortgage is simply no longer
affordable. Where this happens, you may need to consider
selling your home or voluntarily surrendering it to us.
What can happen if you
don’t engage with us
If you do not engage with us or co-operate with the Mortgage Arrears Resolution
Process, we may take legal action against you.
If the Bank begins legal action, you face the possibility of losing your
home. Your home may be reposessed.
Any costs relating to legal action are payable by you and will be billed to your
mortgage account.
If your property is repossessed or sold voluntarily and the proceeds from the sale do
not cover your mortgage account loan in full, you will remain liable for the remaining
balance.
9

Housing loans under Consumer Credit Act 1995
Please note carefully the following information relating to
Housing Loans within the meaning of the Consumer Credit
Act 1995.
WARNING: YOUR HOME IS AT RISK IF YOU DO
NOT KEEP UP PAYMENTS ON A MORTGAGE OR
ANY OTHER LOAN SECURED ON IT.
Variable Rate Loans
THE PAYMENT RATES ON THIS HOUSING LOAN
MAY BE ADJUSTED BY THE LENDER FROM TIME
TO TIME.
Endowment Home Loans
WARNING: THERE IS NO GUARANTEE THAT THE
PROCEEDS OF THE INSURANCE POLICY WILL BE
SUFFICIENT TO REPAY THE LOAN IN FULL WHEN IT
BECOMES DUE FOR REPAYMENT.
The early surrender of the Insurance Policy in respect of your
Endowment Loan may result in a return to you which would
be less than you have paid in premia and other charges.
Interest Only Mortgages
WARNING: THE ENTIRE AMOUNT THAT YOU HAVE
BORROWED WILL STILL BE OUTSTANDING AT THE
END OF THE INTEREST ONLY PERIOD.
Fixed Rate Loans
WARNING: YOU MAY HAVE TO PAY CHARGES IF
YOU PAY OFF A FIXED-RATE LOAN EARLY.
Whenever (i) repayment of a loan in full or in part is made
or (ii) with the agreement of permanent tsb, the loan is
switched to a variable rate loan or other fi xed rate loan,
before expiry of the Fixed Rate Period (hereinafter called
the “Early Termination”), the applicant shall, in addition to
all other sums payable as a condition of and at the time of
the Early Termination, pay a sum equal to the permanent
tsb’s estimate of the loss (if any) arising from the Early
Termination. In the calculation of the said loss, permanent
tsb shall endeavour to apply, in so far as it is fair and
practicable, the formula C=(I-S) x R x (M-T) where C is
the charge to compensate for the loss (if greater than 0),
I is the swap/market fi xed interest rate for the term of the
Fixed Rate Period at the date of its commencement, S is the
swap/market interest rate for the remaining fi xed period, R is
the amount of the Fixed Rate loan balance paid or switched
at the date of Early Termination, M is the Fixed Rate Period
and T is the time expired of the Fixed Rate Period at the date
of Early Termination.
Arrears
Interest will be applied to the outstanding balance of the
loan. This balance includes any element of unpaid interest
and charges which will accrue interest and be capitalised
to the account.
Tracker Mortgage Loans
1. The interest rate applicable to Tracker Mortgage Loans
is made up of the European Central Bank Refi nancing
Rate (“the ECB Rate”) plus a percentage over the
ECB Rate. The amount of the percentage over the
ECB Rate will depend on the amount of the loan and
that percentage will not be exceeded during the term
of the loan.
2. The ECB rate may be increased or decreased from
time to time by the European Central Bank (ECB). We
will apply all increases or decreases within one month
of the date announced by the ECB as the effective
date.
3. If we cannot use the ECB Rate for this loan, we will
use another reference rate or calculation that is fair and
reasonable.
4. If more than one Tracker Mortgage Loan exists on the
property, these loans cannot be added together to get
a different interest rate over the ECB rate.

USEFUL NUMBERS
permanent tsb
General mortgage and
pre-arrears queries: 1890 500 121 (option 4) - Lines are open Monday to Friday, 8am to 7pm
(excluding bank holidays).
Customers in arrears: 1800 855 010 - Lines are open Monday to Friday, 9am to 9pm
(excluding bank holidays), Saturday, 9am to 3pm.
Calls may be recorded.
Online: www.permanenttsb.ie
Here are the contact details of some institutions and agencies that may be of
help to you.
Money Advice and Budgeting Service (MABS)
MABS is a national, free, confi dential and independent service for people in debt or in danger
of getting into debt.
MABS Helpline: 1890 283 438 (Mon – Fri, 9am to 8pm)
Online: www.mabs.ie or www.keepingyourhome.ie
Mortgage Arrears Information Helpline
The Mortgage Arrears Information Helpline provides information in relation to the Code of
Conduct on Mortgage Arrears and the support available for customers in arrears or worried that
they may soon be in arrears.
Phone: 0761 07 4050
Online: www.keepingyourhome.ie
Citizens Information Board
The Citizens Information Board helps people to access accurate, comprehensive and clear
information relating to social services.
Citizens Information Board,
Georges Quay House, 43 Townsend St, Dublin 2
Lo Call: 1890 777 121
Online: www.citizensinformation.ie
Department of Social Protection
Lo Call: 1890 66 22 44 (Mon – Fri, 9am to 5pm)
Lo Call: 1890 20 23 25 (24 Hours a day, 7 days a week)
Online: www.welfare.ie
Financial Services Ombudsman
Financial Services Ombudsman
3rd fl oor, Lincoln House, Lincoln Place, Dublin 2
Lo Call: 1890 88 20 90
Tel: (01) 662 0899
Online: www.fi nancialombudsman.ie

56-59 St. Stephen’s Green, Dublin 2.
Phone: 1890 500 121 (Option 4)
www.permanenttsb.ie
Reference: BMK 1988 (Rev 12/12)
permanent tsb p.l.c. is regulated by the Central Bank of Ireland.