Bank plan could force people to give up tracker mortgages
Homeowners in arrears could be forced to give up their tracker mortgages under plans unveiled by the Central Bank today.
It says that customers who are given some form of long-term debt relief may have their low-interest rate tracker mortgages removed.
The Central Bank has also said that while repossessing homes is a last resort, there will now be a shorter period before legal action begin.
Director of Consumer Protection at the Central Bank Bernard Sheridan says borrowers have nothing to fear from the new rules, which come into force next week.
"People do not need to worry," he said.
"I think what they need to do is make sure they're engaging with the lender and co-operating.
"If you're in that situation, you can really influence the outcome.
"If you're not co-operating, not engaging, I think what the new code will be [doing] - it will be facilitating lenders, if you like, to actually work through those cases.
"So my advice is to co-operate and engage."
