Appendix 1
[FONT="]The Central Bank’s definition of a sustainable solution[/FONT]
[FONT="]A “sustainable solution” as
one of the following:[/FONT]
[FONT="](a) An arrangement concluded under a bank’s Mortgage Arrears Resolution Process MARP , in accordance with the CCMA, where the borrower is cooperating under the MARP and the bank has satisfied itself that the arrangement provides a sustainable solution which is likely to enable the customer to meet the original or, as appropriate, the amended terms of the mortgage over the full remaining life of the mortgage, including repayment of the original or an agreed revised principal sum where offered. This may include an interest only or other temporary solution for a period if it is likely that full repayment of the original or revised principal will be achieved over time, or where there is a payment plan to return the account to sustainability through the clearance of arrears;[/FONT]
[FONT="]
[/FONT]
[FONT="](b) A personal insolvency arrangement effected under the Personal Insolvency Act 2012; or[/FONT]
[FONT="]
[/FONT]
[FONT="](c) If an arrangement could not be reached or is not appropriate, that the PDH or BTL property securing the loan has been voluntarily sold or, failing that, any situation where a Specified Credit Institution takes possession of the property including by way of voluntary agreement with the borrower or by Court Order or otherwise [/FONT]
[FONT="]([/FONT]
[FONT="]MART[/FONT][FONT="] Page 20) [/FONT]
[FONT="] [/FONT]
[FONT="]The Mortgage Arrears Code [/FONT][FONT="] sections on trackers [/FONT]
[FONT="]46. In the case of an existing tracker mortgage, if, following consideration of the options in accordance with Provision 39, in conjunction with Provision 41, the lender concludes that none of the option(s) that would allow the borrower to retain his/her tracker interest rate is/are appropriate and sustainable for the borrower’s individual circumstances, the lender may offer the borrower an alternative repayment arrangement which requires the borrower to change from an existing tracker mortgage to another mortgage type, if that alternative repayment arrangement:[/FONT]
[FONT="]a) is affordable for the borrower, and[/FONT]
[FONT="]b) is a long-term sustainable solution which is consistent with Central Bank of Ireland policy on sustainability.[/FONT]
[FONT="] [/FONT]
[FONT="]39. In order to determine which options for alternative repayment arrangements are viable for each particular case, a lender must explore all of the options for alternative repayment arrangements offered by that lender. Such alternative repayment arrangements may include: (Interest only/reduced interest rate/split mortgage, etc. ) [/FONT]
[FONT="] [/FONT]
[FONT="]41. The lender must not require the borrower to change from an existing tracker mortgage to another mortgage type, as part of any alternative repayment arrangement offered to the borrower, except in the circumstances set out in Provision 46.[/FONT]
[FONT="] [/FONT]