OPTION 4
‘Extension of loan Term’ The term is extended so you pay the mortgage over a longer period, resulting in a lower monthly repayment. ‘Capitalisation of the Arrears and Interest’ The outstanding arrears and interest are added to the capital balance, so you are no longer in arrears. To ensure the arrears amount is paid off, either your payments increase to a higher amount that ensures you repay your mortgage within the original term or where appropriate, the term of your mortgage will be extended your repayments by spreading the amount of any arreears and interest over the remaining term of your mortgage agreement.
EACH OF THE OPTIONS FOR ALTERNATIVE REPAYMENT ARRANGEMENTS HAS STRICT QUALIFYING CRITERIA, WITH EACH CASE ASSESSED ON AN INDIVIDUAL CASE- BY-CASE BASIS.
Important points to note in relation to alternative repayment options:
Any new arrangement (and past arrears) will be reflected on your credit history. This is a key assessment tool lenders will use to process any credit applications you make.
An alternative repayment arrangement may be affordable for you in the short term but could be more expensive over the life of the loan.
• You need to fully understand the implications of any new loan arrangement before you formally accept it. We strongly recommend that you obtain independent legal, tax and financial advice before agreeing to any resolution arrangement, in particular if you have any questions as to the legal, tax or financial implications of the arrangement.
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Contact Us: 053 94 88709 | arrearssupport@alturacu.ie
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