Mortgage arrears

What are mortgage arrears?

Mortgage arrears happen when you miss one or more mortgage repayments. This can seriously affect your credit history and, if not addressed, may put your home at risk of repossession. If you’re struggling to pay your mortgage or think you might miss a payment, contact your lender as soon as possible – ideally in writing. 

On this page you'll find out about free independent advice and supports like Money Advice and Budgeting Service (MABS), Abhaile and the Central Bank of Ireland’s Code of Conduct on Mortgage Arrears.

What should you do if you miss a mortgage payment?

• Contact your lender as soon as possible
• Review your income and spending
• Create a debt action plan to prepare for discussions

What information will your lender ask for?

Your lender may ask for details of your income, spending, debts and assets. You'll usually need to fill out a Standard Financial Statement (SFS). The Central Bank of Ireland has created a guide to filling out this form. 

What alternative arrangements might be available?

Lenders may offer options like interest-only payments, extending your mortgage term or restructuring your repayments.

What is the Mortgage Arrears Resolution Process (MARP)?

Under the Central Bank's Consumer Protection Code 2025, all lenders must have a Mortgage Arrears Resolution Process (MARP). These requirements apply to the mortgage on your primary residence. Lenders must handle cases sympathetically and positively to help you meet your mortgage repayment.

Your rights and protections under MARP:

• You should be treated fairly and respectfully by your lender.
• Clear information about your arrears, available options, and the MARP process must be provided.
• Your case will be assessed based on your individual circumstances.
• Alternative repayment arrangements should be offered where possible.
• You can appeal a lender’s decision through their internal appeals process.
• If you’re not satisfied, you can make a complaint to the Financial Services and Pensions Ombudsman (FSPO).
• Written notice must be given before any legal action is taken.
• Free, independent advice is available (e.g., MABS, Abhaile, FLAC).

What supports are available if I’m in mortgage arrears?

Money Advice and Budgeting Service (MABS)

If you’re struggling with debt or need help managing your money, the Money Advice and Budgeting Service (MABS) offers free, independent, and confidential support. MABS can help you manage your debts, create a realistic budget, deal with your lenders and plan for the future. 

Abhaile

If you are already in serious mortgage arrears, the Abhaile service (provided by MABS) is there to help. Through Abhaile, you can get free access to debt advice, financial advice, legal advice and insolvency advice. A dedicated adviser will work with you and your lender to find the best solution for your situation.

Specified financial advice

Participating lenders pay €250 towards specified financial advice as part of MARP. More information is available on Mabs.ie.

FLAC

The Free Legal Aid Centres (FLAC) provide free legal services if your lender starts repossession proceedings.

What happens if your mortgage is sold to another company?

If your mortgage is sold, your rights under the Central Bank's Consumer Protection Code remain the same.

What happens if you’re in long-term arrears (over 2 years)?

If you’re in long-term arrears, you may have extra protections and supports – ask your lender or MABS for advice.

How long before legal action? 

Repossession is a last resort. The MARP process must be followed, which gives you time to find a solution.

What are the consequences for your credit history and future borrowing?

• Negative impact on your credit record: Missed mortgage payments are reported to the Central Credit Register (CCR). This can make it much harder to get loans, credit cards or even mobile phone contracts in the future. 
• Difficulty getting a new mortgage: Lenders may refuse new mortgage applications or offer less favourable terms if you have a history of arrears. 
• Higher borrowing costs: If you are approved for credit, you may be charged higher interest rates because you are seen as a higher risk. 
• Long-term effects: Arrears can stay on your credit record for up to five years after the issue is resolved, affecting your financial options for years to come.

What if you can’t afford to keep your home? 

There are several options to consider:

• Voluntary sale: You may be able to sell your home yourself, with your lender’s agreement, to pay off as much of the mortgage as possible. If the sale doesn’t cover the full amount owed, you'll need to agree with your lender how to deal with any remaining debt.
• Mortgage to Rent scheme: If you qualify, you might be able to stay in your home as a social housing tenant. Under this scheme, your home is bought by a housing association or local authority, and you pay rent instead of a mortgage. The Housing Agency has guidance on this. 
• Personal insolvency solutions: If your debts are unmanageable, you may be able to apply for a Personal Insolvency Arrangement (PIA). This is a formal, legally binding solution that can help you deal with mortgage and other debts. The Abhaile service and MABS can provide free advice and support.
• Back on track: The Insolvency Service of Ireland offers mortgage arrears and repossession support. 
• Bankruptcy: A legal process that writes off most debts if you can’t pay them and other solutions haven’t worked. It’s a last resort and has serious consequences for your credit and assets. Gov.ie has information on the procedure. 

These options are last resorts and can have serious, long-term consequences. Before considering any of them, it’s important to talk to your lender as early as possible – many problems can be resolved by working together. 

You should also get independent financial advice from MABS, who can help you understand your options and support you through the process. Taking action early and seeking advice gives you the best chance of finding a solution and keeping your home if possible.