Late mortgage payments, marps booklet and credit rating?

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Suzierea

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So myself and my partner had run into shorterm financial difficulty which will be back on track in june. But unfortunatley i have been late for a couple of months with my mortgage. Its being paid just 3 weeks after its due each time but as i said in june we will be back on track. I received a marps letter with booklet today from pepper and told to fill it out.

Currently my mortgage payment for april will be paid in 2 weeks and then the may payment will be paid 2nd week in june and then i will have june payment on time. So my question is do i need to fill out marps booklet ? Also how badly would my credit rating be affected now.
 
How many months were you behind? Have they just sent you the booklet today?

Will it affect your credit rating? Yes but it depends if you are looking for another loan or not right now or in the next 18months. Also it depends on what lender you are approaching for the loan.
Dont worry about your credit rating at the moment. They will ask you to fill this out if you are afew months behind. It really depends how far behind you are.
The first thing you need to do is call them to say the payments will be delayed but arrears will be up to date by June. Make sure you get the persons name time and date of your conversation. Put this in writing. Have they called you to remind you the mortgage was late or not paid? You have a reason for the delayed payment so you can explain it if you are asked in the future.

Your irish credit bureau will show the last 18months transactions. After the 18months the blip will not be seen. If you are looking for a loan within the next 18months then you let them know straight away on your application.
I think from memory it shows x for each months payment you have paid. So you pay the mortgage it will say 'x' so paid. Then when you miss one full month and not pay that month it will show '0' for that month. Then if you have missed two full payments it will say '1' in the next month and so on. If you miss a month and pay the second and that month it will show x as up to date and paid. Once you are up to date you should be ok. After the few months you will be back on track. As long as you do not need a new loan or hp you should be fine. If you find you get into difficulty again ring them as soon as possible. If you know you will be late with the mortgage payment then contact them straight away. That way they will have a note on the account. E.g lost job, out sick etc.
I have a suggestion that once you are up to date see if you can pay a small amount extra each month. That way you will be in advance and if you are in difficulty you will have something already paid ready to go.
 
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Banks tend to take mortgage payments on the 1st of the month, but you can choose any date up to 28th. Maybe take a little pressure off and get payment date changed to later in the month.
 
Sconeandjam said:
pay a small amount extra each month. That way you will be in advance and if you are in difficulty you will have something already paid ready to go.
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Are you sure about this?

ptsb treats overpayments as payments in advance.

But I don't think any other lender does. If you overpay, they reduce the term or the repayment amount. But if you miss a revised repayment, then you go into arrears. You might be years ahead of where you should be but you are still in arrears.

Brendan
 
Suzierea said:
I received a marps letter with booklet today from pepper and told to fill it out.

Currently my mortgage payment for april will be paid in 2 weeks and then the may payment will be paid 2nd week in june and then i will have june payment on time. So my question is do i need to fill out marps booklet ?
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I presume that you're referring to the SFS (Standard Financial Statement) here? Why would you not fill this in if you've been asked to and have been having problems meeting your scheduled repayments? If you don't then you could be classed as not engaging with your lender which might not be to your advantage if you continue to be late with your repayments and things escalate. The MARP process is in place in an attempt to deal with borrowers having problems or likely to have problems with servicing their mortgages - not to hassle borrowers.

Mortgage Arrears Resolution Process (MARP)

Mortgage lenders must follow a defined process when dealing with borrowers facing arrears. This process is known as MARP.
www.citizensinformation.ie www.citizensinformation.ie
You can check your CCR (Central Credit Register) record to see if your lender has logged anything yet. But it might be too early to do that if they were recent.

Apply for your credit report and other rights

Information for consumers about the Central Credit Register
www.centralcreditregister.ie www.centralcreditregister.ie
 
Filling in the SFS is a major task. It is not an easy document.

But Clubman makes a good point about being considered non engaging

It is very important to tell your lender that you are experiencing difficulty. But in your case, if you are confident that you will be up to date in June, then don't bother with the SFS.

Just call them and follow up with a letter.

You do not want your mortgage restructured unless you really need it.

But maybe it's already restructured as you are with Pepper.

Brendan
 
Suzierea said:
Also how badly would my credit rating be affected now.
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It shouldn't be at all. There is a 1 month grace period built into the calculation of data for CCR, so this should not appear on your record. If however you try to switch mortgage lender in future, they may ask for mortgage statements where it will show.


Sconeandjam said:
Your irish credit bureau will show the last 18months transactions. After the 18months the blip will not be seen. If you are looking for a loan within the next 18months then you let them know straight away on your application.
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ICB deleted all their records in September 2021...
 
Brendan Burgess said:
Are you sure about this?

ptsb treats overpayments as payments in advance.

But I don't think any other lender does. If you overpay, they reduce the term or the repayment amount. But if you miss a revised repayment, then you go into arrears. You might be years ahead of where you should be but you are still in arrears.

Brendan
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We had an over payment of just over one month worth with Ulster Bank and the transfer from AIB did not work one time for the payment. I rang the bank as I was going to pay in branch and they said as there was an advance it would be used for that month. This was a few years ago. Did not know about ptsb. I stand corrected. Maybe if OP ask their bank If they have that option?
Also my friend has a mortgage with boi and and she applied for the overpayment to cover a missing payment and it had no effect on her record. Overpayment was used then.
 
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Right Winger said:
I didn't know that. Wonder what's the thinking behind it?

I thought that was specifically prohibited in law. Could be wrong....
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The information is more relevant. Your financial situation could improve or get reduced which could be short term e.g, out sick. No need to look back further than 2 years As they are looking at your current situation.
 
Apologies wrong register(icb) mentioned and not the replacement with ccr. Thank you for the correction.
 
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