A helpful guide to our Mortgage Arrears Resolution Process. Bank of Scotland plc Customer Guide

Transcription

1 A helpful guide to our Mortgage Arrears Resolution Process Bank of Scotland plc Customer Guide

2 We can help At Bank of Scotland plc we understand how the pressures within the current economic climate may have the potential to present real challenges to customers financial circumstances. We also appreciate that added pressure on your financial situation could then result in you experiencing difficulty in keeping up with mortgage repayments. If you are currently having difficulties paying your mortgage, or are concerned that you may experience financial difficulties in the future, then we may be able to help you. The information provided in this booklet will provide you with some options to consider and the steps you need to take to seek further help. To meet our obligations under the Central Bank of Ireland s Code of Conduct on Mortgage Arrears, (the Code ), we have in place a four step Mortgage Arrears Resolution Process ( MARP ) to help customers in mortgage arrears or those at risk of going into arrears in the future. These four steps are: 1. Communication with you 2. Understanding your financial situation 3. Assessing your situation 4. Reaching a resolution As part of the Code, we will apply our MARP to your mortgage loan which is secured by your primary residence in the Republic of Ireland. To be clear, your primary residence qualifies as either: the residential property you occupy as your primary residence; or a residential property which is the only residential property owned by you in the Republic of Ireland. 1 1 Full details of the Code can be found on the Central Bank of Ireland s website ( We can support Bank of Scotland plc has appointed Pepper Asset Servicing ( Pepper ) to provide customer support and administration services to Bank of Scotland plc and to support Bank of Scotland plc in the management of its business in Ireland and Northern Ireland. Pepper has an experienced and dedicated team who work closely with any mortgage customers who are either experiencing, or are anticipating future difficulties in making their mortgage payments - this is the Pepper Arrears Support Unit or your Pepper Relationship Manager. Pepper will liaise between us and you to make sure that our MARP is followed and that the best outcome possible is reached. Please refer to the Useful Contacts section of this booklet for more information. We want to assure you that we are fully committed to supporting you. We want to make sure that the level of written and verbal communication that you receive is proportionate and reasonable and that we are treating all of our customers fairly. We will always take your specific circumstances into consideration, giving you sufficient time to complete any actions agreed between us. We are always happy to help and support you where we can throughout the process. How our Mortgage Arrears Resolution Process (MARP) works The four steps: 1. Communication with you Talk to us don t ignore the problem Addressing or realising there is a problem is one of the most important steps towards reaching a solution. You should contact Pepper as soon as you realise you are in, or at risk of falling into, financial difficulties. Once you make contact we can immediately start working with you to reach a solution. We would like to agree a solution with you before you encounter any further difficulties or your situation worsens. Please refer to the Useful Contacts section of this booklet for contact details. 1

3 2. Understanding your financial situation the Standard Financial Statement Understanding your finances The first step to resolving your financial difficulties is understanding your finances. When you contact Pepper to tell them that you are either in financial difficulty or in danger of getting into financial difficulty, or when Pepper contacts you in relation to your arrears situation, you will be asked to complete a Standard Financial Statement (we have provided a copy of the Standard Financial Statement at the back of this booklet). Pepper can help you to complete this form. Please refer to the Useful Contacts section of this booklet for contact details. It is important to fill out the Standard Financial Statement accurately, honestly and fully and provide any documentation requested to allow us to fully assess your situation. Standard Financial Statements should be completed and returned to Pepper should you need it. Please refer to the Useful Contacts section of this booklet. Please note: Incomplete statements may be returned to you and this may delay the process. You may also be asked to provide additional documentation to support the information you have provided, e.g. bank statements. You may wish to obtain independent advice to help you with completing forms such as the Standard Financial Statement. E.g. advice may be available from the Money Advice and Budgeting Service The Central Bank of Ireland has also published a guide to completing the Standard Financial Statement. This guide can be found on its website at 3. Assessing your situation Financial Assessment Once you have completed and returned your requested documentation to Pepper it will be passed to our Arrears Support Unit who will use the information provided by you to assess your situation on its individual merits. The Arrears Support Unit will carefully consider: your personal circumstances your financial circumstances - household income, expenditure and domestic budget your overall personal debt the information provided in the Standard Financial Statement your current ability to make repayments your previous repayment history any other information that impacts the assessment i.e. illness, disability etc. any proposal you have submitted 4. Reaching a resolution Possible Outcome We will do all we can to help. Our Arrears Support Unit will explore all available resolutions in an attempt to arrange a new repayment plan with you. We will take into account both your interests and our responsibilities as the lender. Alternative repayment arrangements are available, however, these vary from case to case and are subject to an assessment of your individual circumstances where applicable or appropriate such as: affordability arrears on account previous alternative repayment arrangements maintenance of previous alternative repayment arrangements ongoing sustainability of any alternative repayment arrangements offered by us We will decide which alternative repayment arrangement we believe is best suited to your individual circumstances, having assessed all of the information provided. 2

4 We may decide that it is not possible to reach a resolution. If this happens we will write to you with the reasons for our decision. If an alternative repayment arrangement is agreed, it is important that you keep to the terms of the arrangement. If there is a change in your circumstances that may affect the arrangement, you should contact Pepper immediately. The terms and conditions of your mortgage will continue to apply, except to the extent they have been modified by the new alternative repayment arrangement. Please note: An alternative repayment arrangement may be affordable to you in the short term but could be more expensive over the life of the loan. You are required to maintain your full contractual repayments until we have processed your request and informed you of our decision. Alternative repayment arrangements - explained Interest Only Payments: This alternative repayment arrangement means that only the interest is repaid for a specific agreed period of time. Paying interest only will result in a lower monthly repayment. No capital is repaid during the interest only period which may result in you paying additional interest on your account over the remaining term of the loan. Note: if the interest rate on your loan changes while this alternative repayment arrangement is in place, your repayment amount will increase or decrease in line with the interest rate change. Interest and Part Capital Payments: This alternative repayment arrangement means that you pay your full monthly interest and a reduced amount of your capital for a specific agreed period of time. Your monthly repayments will be higher than with an interest only payment, as you are paying both the interest and some of the capital of the loan. As you will be paying off less capital during the alternative arrangement period, this may result in you paying additional interest on your account over the remaining term. Note: if the interest rate on your loan changes while this alternative repayment arrangement is in place, your repayment amount will increase or decrease in line with the interest rate change. Reduced Payments: This alternative repayment arrangement means that you pay a fixed monthly repayment which is less than the monthly payments agreed in your original mortgage for a specified period of time. As you will be paying off less capital during the alternative arrangement period, this may result in you paying additional interest on your account over the remaining term. Moratorium: A moratorium is an agreed period of time during which you will not be required to make payments to your account As you will be paying neither capital nor interest during the moratorium period, this will result in an increase to your account balance and may result in you paying additional interest on your account over the remaining term. Please Note: The above alternative repayment arrangements offer a temporary solution to any financial difficulty you may be experiencing and therefore no other changes will be made to the terms and conditions of your mortgage, including the agreed term over which your mortgage will be repaid. As all the above alternative repayment arrangements will result in you paying less capital than would have been the case had the contractual payments continued to have been paid,your account balance will be higher than anticipated and therefore your existing contractual payment may no longer be sufficient to repay the mortgage within the agreed term. Should the bank be required to recalculate your contractual payment following the expiry of an alternative repayment arrangement (for example, if there were to be a change to the account interest rate), then the new contractual payment will be calculated to ensure that your account is repaid within the agreed term. Extension of the Mortgage Term: This alternative repayment arrangement allows you to extend the life of your mortgage as a means of reducing your actual monthly repayments by spreading the amount owed over a longer period. Whilst this will result in lower monthly repayments, it should be noted that interest will be charged over the extended period. Capitalising the Arrears and Interest: This alternative repayment arrangement means that all outstanding mortgage arrears will be added to the remaining principal balance and repaid over the mortgage term. Your monthly instalment will be recalculated and adjusted in line with your original terms and conditions. Trade Down: If you are no longer able to meet existing mortgage repayments we may allow you to sell your existing property and purchase a property of lower value, thereby reducing your mortgage repayments. Note that this option is only available where you meet certain criteria. Voluntary Sale: This is where we may allow you to sell your property and use the funds from the sale to reduce or clear your remaining mortgage balance including your arrears. Voluntary Surrender: This is where we may allow you to move out of the property and we will sell the property on your behalf. The funds from the sale will be used to reduce or clear your remaining mortgage balance including your arrears. Mortgage to Rent (MTR): Mortgage to Rent is a government initiative that allows you to remain in your family home. Mortgage to Rent is where you voluntarily surrender your family home to the Bank who, with your agreement, sells the 3

5 family home to an Approved Housing Association at the current market value. An Approved Housing Association will own the property and you will pay rent to them. You will no longer own the property. The availability of Mortgage to Rent is subject to criteria set out by the government under the Mortgage to Rent initiative. IMPORTANT INFORMATION You will remain liable for any outstanding debt, interest and all associated costs if your property is sold and the sale proceeds are less than the outstanding balance of the loan. The availability of any resolution is subject to an assessment of your individual circumstances and meeting certain criteria. Once a resolution is put in place, we will review this arrangement at your request or at intervals that are appropriate to your arrangement. We may require you to sign a confidentiality agreement as part of a resolution. We recommend that all borrowers and their spouse or civil partner (where relevant) seek independent legal or financial advice prior to entering into a confidentiality, settlement or alternative repayment agreement. If an alternative repayment arrangement has been agreed you should ensure that your life assurance in place is sufficient to cover your revised mortgage terms. If you have a full term interest only mortgage agreement you should ensure that you have a suitable repayment plan in place as the entire amount that you have borrowed will still be outstanding at the end of the mortgage term. Data relating to your arrears will be shared with the Irish Credit Bureau or any other credit reference agency or credit register, where permitted by contract or required by law. Not co-operating what this means Under the Code you can be considered as not co-operating when any of the following apply to your case: 1) a. You fail to make a full and honest disclosure of information to us that would have a significant impact on your financial situation OR b. You fail to provide information, relevant to your financial situation, within the timeline specified by us. OR c. A three month period elapses: i. (A) where you have not entered into an alternative repayment arrangement, and during which you: i. have failed to meet your mortgage repayments in full or ii. meet your mortgage repayments in full but have an arrears balance remaining on the mortgage; OR (B) have failed to meet the full repayments as specified in an alternative repayment arrangement, AND ii. (A) have failed to make contact with or responded to any communications from us or Pepper, OR (B) have made contact with or responded to any communications from us or Pepper but have not engaged in such a way that enables us to complete an assessment of your circumstances. And 2) you have not carried out the actions specified in the letter from Bank of Scotland plc, warning you that you may be classified as not co-operating. Implications of not co-operating : The implications of not co-operating under the Code include: incurring charges and/or surcharge interest on arrears arising on your mortgage account the start of legal proceedings for repossession of the property immediately after classifying you as not co-operating and an impact on your eligibility for a Personal Insolvency Arrangement in accordance with the eligibility criteria set out in the Personal Insolvency Act 2012 If you are classified as not co-operating you will fall outside of the MARP and the protections of the MARP will no longer apply. 4

6 Your right to appeal If you are unhappy with the decision of our Arrears Support Unit in relation to an alternative repayment arrangement, or with being classified as not co-operating, you may submit an appeal in writing to our Appeals Board for an independent review. Your appeal must be made to our Appeals Board within 20 business days of receiving notification of our decision. The appeal should be addressed to the Appeals Processing Unit in Pepper, who act as our liaison, at the following address: Appeals Processing Unit, Pepper Asset Servicing, PO Box 694, Shannon, Co Clare, Pepper will acknowledge receipt of the appeal in writing on our behalf within 5 business days of the appeal being received. We will send you regular written updates on the progress of your appeal. You will have one or more points of contact appointed by us to support you with your appeal, until our Appeals Board make their decision. A final decision will be made by our Appeals Board within 40 business days of receipt of the appeal. Our Appeals Board will provide a written decision to you within five business days of the decision being reached explaining the reasons for our decision and the terms of any offer being made. If you remain unhappy with our final response in relation to your appeal, you have the right to contact the Financial Services Ombudsman in Ireland. Please refer to the Useful Contacts section at the back of this booklet for contact details. Although Bank of Scotland plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the United Kingdom, the Financial Ombudsman Service (FOS) in the UK will not adjudicate on the Central Bank of Ireland s Code of Conduct on Mortgage Arrears. How to complain If you are unhappy with how we have dealt with your case or our compliance with the Code, you can make a complaint in writing or by phone. To talk to someone about your complaint you will need to contact Pepper. Please refer to the Useful Contacts section at the back of this booklet for contact details. We will acknowledge your complaint within 5 working days. A full investigation of the complaint will then be made and while the investigation is ongoing you will receive written updates at intervals of no more than 20 business days. Once the investigation is complete, we will write to you with the outcome along with any action we suggest related to the complaint. If you are still unhappy with our final response, you have the right to contact the Financial Services Ombudsman in Ireland. Please refer to the Useful Contacts sections at the back of this booklet for contact details. Although Bank of Scotland plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the United Kingdom, the Financial Ombudsman Service (FOS) in the UK will not adjudicate on the Central Bank of Ireland s Code of Conduct on Mortgage Arrears. Helpful Information Some steps you should consider: If you are struggling with your financial commitments, you should pay all your priority bills first, such as your mortgage, utility bills (electricity, gas, water), insurances, tax, child support maintenance and housekeeping and essential goods or services (e.g.travel to work). It is important that you make sure that you pay these priority bills before making any payments towards credit cards or loans. We would strongly recommend you speak to your loan and credit card providers to discuss how you could restructure these debts so that you can afford the monthly repayments after having paid your priority bills. Check whether you are eligible for any state benefits or tax credits which could help to increase your income. In particular, if you are unemployed or are working on reduced pay, you may be entitled to the Mortgage Interest Supplement. We also recommend that you investigate whether you can claim Mortgage Interest Relief on the tax that you pay. Please refer to the Useful Contacts section of this booklet which will help you find further information on these State Supports. If you have purchased an insurance policy such as payment protection insurance in relation to your mortgage account which subsequently went into arrears, you may wish to make a claim on the policy. You may wish to seek assistance with managing your finances or completing your Standard Financial Statement. We recommend you seek independent financial and/or legal advice, e.g. from your local Money Advice and Budgeting Service. Please refer to the Useful Contacts section at the back of this booklet for contact details. Please ensure all joint mortgage holders, spouses/civil partners and anyone acting as a guarantor on the mortgage, are up to date with what is happening. 5

7 You should never: Ignore missed repayments: As soon as you are aware that there is or may be a problem you should immediately contact Pepper. Please refer to the Useful Contacts section of this booklet for contact details. Ignore correspondence or calls from Pepper or Bank of Scotland plc: We want to support you to try and identify solutions to help ease any difficulties you are experiencing with your financial situation. Fail to provide financial information: It is important that we have an accurate, honest and full view of your financial situation in order to consider the most appropriate solutions to try to ease your financial situation. Hand back your keys: This will not absolve you from your mortgage obligations. If the value of your home is less than you owe, irrespective of how the property is disposed of, you will remain liable for the outstanding debt, including any accrued interest, charges, legal, selling and other related costs. Useful Contacts Bank of Scotland plc This booklet may also be obtained from our website which also includes additional information and a copy of the Standard Financial Statement. Pepper Bank of Scotland plc has appointed Pepper to provide customer support and administration services to Bank of Scotland plc and to support Bank of Scotland plc in the management of its business in the Republic of Ireland and Northern Ireland. Pepper Arrears Support Unit / Pepper Relationship Manager You should contact the Pepper Arrears Support Unit if you miss a mortgage repayment or if you believe that you may have difficulty meeting your mortgage repayments. Address: Pepper Arrears Support Unit, PO Box 694, 4310 Atlantic Avenue, Westpark Business Campus, Shannon, Co Clare, Telephone: (ROI) or (UK/NI) If you require assistance with completing the Standard Financial Statement, please contact Pepper at (ROI) or (UK/NI) Or If you have a Pepper Relationship Manager you should contact them if you miss a mortgage repayment, you believe that you may have difficulty meeting your mortgage repayments or if you require assistance with completing the Standard Financial Statement. Address: Pepper Asset Servicing, PO Box 694, 4310 Atlantic Avenue, Westpark Business Campus, Shannon, Co Clare, Telephone: (ROI) or (UK/NI) Appeals An appeal should be made in writing and addressed to the Appeals Processing Unit in Pepper, who act as our liaison, at the following address: Appeals Processing Unit. Pepper Asset Servicing, PO Box 694, 4310 Atlantic Avenue, Westpark Business Campus, Shannon, Co Clare, Complaints Complaints can be made either by telephone or in writing to: Address: Pepper Asset Servicing, PO Box 694, 4310 Atlantic Avenue, Westpark Business Campus, Shannon, Co Clare, Telephone: (ROI) or (UK/NI) or your Relationship Manager 6

8 Money Advice and Budgeting Service (MABS) MABS is a free confidential and independent service in the Republic of Ireland for people in financial difficulty. Telephone: Central Bank of Ireland The Central Bank s website provides independent information on financial products and details of financial services providers. On the website you can find the text of the Code as well as a consumer guidance note Mortgage Arrears-A Consumer Guide to Dealing with Your Lender which you may find useful. Telephone: National Consumer Agency The National Consumer Agency provides statutory consumer information and performs the education functions of the Central Bank of Ireland. This includes providing information on the Code. The following websites provide useful information for consumers: ie Citizens Information The Citizens Information Board is the statutory body in the Republic of Ireland which supports the provision of information, advice and advocacy on a broad range of public and social services including health, employment, social welfare and money. Department of Social Protection The website of the Department of Social Protection provides information relating to Job Seekers Allowance, Mortgage Interest Supplement and other welfare benefits in the Republic of Ireland for which you may be eligible for. Office of the Revenue Commissioners The website of the Revenue Commissioners offers information on all tax credits and benefits you may be entitled to in the Republic of Ireland, including Mortgage Interest Relief. Legal Aid Board The Legal Aid Board provide legal aid and advice on matters of civil law to people unable to fund these services from their own resources. Financial Services Ombudsman The Financial Services Ombudsman is a statutory officer who deals independently with unresolved complaints from consumers about their individual cases with all financial service providers in the Republic of Ireland. Address: The Financial Services Ombudsman Bureau at 3rd Floor, Lincoln House, Lincoln Place, Dublin 2, Republic of Ireland. Telephone: / (01) enquiries@financialombudsman.ie. You may find further useful information available at: 7

9 Insolvency Service of Ireland The Insolvency Service of Ireland is a statutory body established under the Personal Insolvency Act 2012 and its functions include the provision of information to the public relating to the Act. Address: Insolvency Service of Ireland, Block 2, Phoenix House, Conyngham Road, Dublin 8. Telephone: Fees and charges Bank of Scotland plc s fees and charges may change from time to time and other terms and conditions apply. For the latest fees and charges information in relation to your loan please go to the Bank of Scotland plc website, and look under the section fees and charges in relation to you. 1. Other fees In addition, customers will have to pay any costs we incur to third parties that we instruct to recover any money owed to us, or that we instruct to create or protect our security, or to protect our legal rights. Examples of costs which may be incurred by us, but for which the customer will be liable include: Solicitor s charges and other legal fees including outlays; Registration fees; and Possession management fees. 2. Redemption fees - early repayment or changing from a fixed interest rate early Where you repay all or part of your mortgage loan during a fixed interest rate period, or switch to a variable or other fixed rate, a breakage fee will be payable by you based on the following formula: (A - B)/365 x C x D where: A: Is the cost of funds to the bank, at the date of making the loan at a fixed rate B: Is the cost of funds to the bank, at the date of redemption of the loan, for the remaining period of the loan at a fixed rate C: Is the remaining term of the loan at the fixed rate in days D: Is the current balance of the loan at the fixed rate of interest If B is greater than A at the date of redemption of your mortgage loan, no redemption fee will be payable. 8

10 Please note carefully the following information relating to Irish Housing Loans covered under the Irish Consumer Credit Act 1995 and the Consumer Protection Code. WARNINGS: YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS ON A MORTGAGE OR ANY OTHER LOAN SECURED ON IT. IF YOU DO NOT MEET THE REPAYMENTS ON YOUR LOAN, YOUR ACCOUNT WILL GO INTO ARREARS. THIS MAY AFFECT YOUR CREDIT RATING, WHICH MAY LIMIT YOUR ABILITY TO ACCESS CREDIT IN THE FUTURE. VARIABLE RATE LOANS: THE PAYMENT RATES ON THIS LOAN MAY BE ADJUSTED BY THE LENDER FROM TIME TO TIME. THE COST OF YOUR MONTHLY REPAYMENTS MAY INCREASE. INTEREST-ONLY MORTGAGES: THE ENTIRE AMOUNT THAT YOU HAVE BORROWED WILL STILL BE OUTSTANDING AT THE END OF THE INTEREST- ONLY PERIOD. FIXED RATE LOANS: YOU MAY HAVE TO PAY CHARGES IF YOU PAY OFF A FIXED RATE LOAN EARLY. TRACKER RATE MORTGAGES: IF YOU SWITCH TO AN ALTERNATIVE INTEREST RATE, YOU WILL NOT BE CONTRACTUALLY ENTITLED TO GO BACK ONTO A TRACKER INTEREST RATE IN THE FUTURE. Bank of Scotland plc has appointed Pepper Asset Servicing to provide customer support and administration services to Bank of Scotland plc and to support Bank of Scotland plc in the management of its business in Ireland and Northern Ireland. Telephone calls may be recorded to confirm instructions given and for quality control, training and regulatory purposes. Telephone calls may be recorded to confirm instructions given and for quality control, training and regulatory purposes. Bank of Scotland plc. Registered in Scotland No. SC Registered office: The Mound, Edinburgh EH1 1YZ. Bank of Scotland plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the United Kingdom and is regulated by the Central Bank of Ireland for conduct of business rules. Financial Services Register no

11 What you need to do now if you are experiencing difficulties Now that you have read the booklet you need to fill in the two following documents: The Standard Financial Statement The Consent Form, including the option you would like us to consider. If you require help with completing the Standard Financial Statement, please contact Pepper on (ROI) or (UK/NI) or your Pepper Relationship Manager. Alternatively, if you feel you would like independent advice to help you with completing the forms, you may be able to get help from the Money Advice and Budgeting Service. You can find their details in the Useful Contacts section of this booklet. Once you have completed both of these documents and signed them please return to Pepper Arrears Support Unit. Please refer to Useful Contacts section of this booklet.

12 Standard Financial Statement This Statement is for use in the MARP Section A: Account & Borrower Details Borrower Information: A1 Name A2 Mortgage Account Reference No (s) A3 Outstanding Mortgage Balance ( ) A4 Estimated Current Value of Primary Residence ( ) A5 Monthly Mortgage Repayments Due ( ) Borrower 1 Borrower 2 A6 Correspondence Address A7 A8 Property Address if different to correspondence Address Please indicate preferred contact method Home Telephone A9 Mobile A10 Work Telephone A11 A12 Marital Status A13 Date of birth DD/MM/YYYY DD/MM/YYYY A14 No. and age of dependent children Child1 Child 2 Child 3 Child 4 A15 A16 A17 A18 A19 A20 Total number in household Employed Y/N; if self-employed give details Occupation (if unemployed give previous occupation) In Permanent employment Y/N Name of Employer & Length of Service Reason(s) for Review/Arrears Section B: Your Monthly Income Borrower 1 Borrower 2 TOTAL B1 B2 B3 B3 (a) B3 (b) B3 (c) B4 B5 B6 B7 B8 B9 B10 B11 Gross Monthly Salary (before tax and any other deductions at source) Net Monthly Salary (after tax and any other deductions at source) 1 Monthly Social Welfare Benefits Please list Benefit- Benefit- Benefit- Child Benefit Mortgage Interest Supplement Family Income Support Maintenance Other, e.g. Pension, room rent, grants (Please Specify) Monthly Income from Property assets (other than primary residence) (see E5) Monthly income from non-property assets (see F8) Total Monthly Income (sum of B2 to B10) G1 1 Do not include any deductions made from your salary at source (e.g., pension contribution, health insurance etc.) anywhere else on this form. 1

13 Utilities C1 Electricity C2 Gas /Oil C3 Phone (Landline & Internet) 3 C4 TV/Cable 3 C5 Mobile Phone C6 Refuse Charges C7 TV Licence Section C: Monthly Household Expenditure Average Charge 2 Arrears (where applicable) C8 C9 C10 C11 C12 Household Childcare Elderly care (e.g., carer, nursing home fees etc) Food/Housekeeping/Personal Care Clothing and Footwear Household Repairs/Maintenance C13 C14 C15 C16 C17 Transport Costs Petrol Motor Insurance /Tax/NCT Rail/Bus/Taxi Costs (including school transport costs for children) Car Maintenance/Repairs Car Parking and Tolls Primary Residence Mortgage-related Costs C18 Mortgage Protection/Endowment Premium C19 Payment Protection C20 House Insurance Education C21 Books C22 School/ College Fees C23 Uniforms C24 Extra Curricular activities (e.g. school outings) C25 Other (e.g. voluntary contributions) Medical C26 Medical Expenses and Prescription Charges 4 C27 Health Insurance 5 Social C28 Lifestyle Expenses (e.g., family events, Christmas, Birthdays, eating out etc.) C29 Club membership C30 Other - please specify 2 Average charge calculated by totalling last three utility bills and dividing by the number of months to get the average monthly cost. 3 Please identify if these bills are bundled. 4 Medical expenses include dentist, optician and any other costs related to health. 5 Do not include if Health Insurance is deducted from your wages at source,( i.e., if it has already been deducted from B2) 2

14 Other C31 Life Assurance C32 Pension Contribution 6 C33 Maintenance paid to spouse/child (if applicable) C34 Rent C35 (a) Property Service/Management Charges C35 (b) Other - please specify C35 (c) Other - please specify C36 Monthly expenditure on property assets (see E5) C37 Monthly Savings Average Charge Arrears (where applicable) C38 Total Monthly Expenditure (sum of C1 to C37) G2 Please provide details of any steps you have already taken to reduce your monthly expenditure and the savings you have achieved: Please provide details of any steps you propose to take to reduce your monthly expenditure and the savings you expect to achieve: 6 Do not include if Pension Contribution is deducted from your wages at source,( i.e., if it has already been deducted from B2) 3

15 Debt Type Monthly Repayments Remaining Term Due Being Paid Section D: Your Current Monthly Debt Payments Total Outstanding Balance Arrears Balance Lender Purpose of Loan D1 Mortgage for Primary Residence D2 Court Mandated Debt (Please Specify) 7 G4 D3 Court Mandated Debt D4 Credit Union D5 Credit Union D6 Overdraft D7 Hire Purchase D8 Store Card D9 Catalogue Debt D10 Credit Card 1 D11 Credit Card 2 D12 Credit Card 3 D13 Personal Loan 1 (please specify) D14 Personal Loan 2 (Please specify) D15 Personal Loan 3 (please specify) D16 Loans from family/ friends D17 Mortgage Debt on property other than primary residence (see E5) 7 e.g., fines, instalment orders, judgements Secured? Y/N Currently Restructured? Y/N Payment Protection Insurance Y/N 4

16 Debt Type D18 Other Debt (please specify) D19 Other Debt D20 D21 D22 Total (sum of D2 to D21) Monthly Repayments Remaining Term Due Being Paid G5 Total Outstanding Balance Arrears Balance Lender Purpose of Loan Secured? Y/N Currently Restructured? Y/N Payment protection Insurance Y/N 5

17 E1 1 E2 2 E3 3 E4 4 Property (give details below) E5 Total Property Type (e.g. Buy to let) Value (est) 9 Type 8 Current Section E: Property Assets (other than Primary Residence) Loan Balance Arrears Balance Monthly Rental Income B 9 Monthly Expenditure (e.g., upkeep, maintenance) C 36 Ownership Restructured Y/N Monthly Mortgage Payments Due Being Paid D Property Assets (other than Primary Residence) Property Address Date of Purchase MONTHLY INCOME AND EXPENDITURES RELATED TO PROPERTY ASSETS SHOULD ALSO BE INCLUDED IN SECTIONS B AND C RESPECTIVELY MONTHLY MORTGAGE REPAYMENTS RELATING TO PROPERTY ASSETS SHOULD BE INCLUDED IN SECTION D 8 For example, sole or joint ownership. Where a property/premises is not 100% owned by customer(s), please state the % amount that is owned 9 Please provide a reasonable estimate of the current value of these assets. Lender For Sale Y/N 6

18 Asset Type Original Cost/ Value( ) F1 Savings/deposits/current account F2 Shares F3 Motor Vehicle (s) F4 Redundancy Payment(s) F5 Long-term investment (s) F6 Other investment(s) Section F: Non-Property Assets Current Estimated Value Net Monthly Income F7 Other Assets (e.g., stock, machinery etc) F8 Total (sum of F1 to F7) B 10 Please Give Any Relevant Details Please list all other liabilities, for example any guarantees given with respect to company borrowing or borrowing by a family member. Please provide any other information which you believe to be relevant to the above: Please complete the Standard Financial Statement checklist on the next page to ensure that you have signed the relevant forms and attached all of the required information 7

19 Standard Financial Statement Checklist Have you completed the following (to be completed by all parties to the Mortgage Account)? Section A: Section B: Section C: Section D: Section E: Section F: Account & Borrower Details Your monthly Income Monthly household expenditure Your current monthly debt payments Property assets Non Property assets Consent Form Have you signed the following forms (to be signed by all parties to the Mortgage Account? Declaration & Credit Reference check consent Consent Form Have you included the following information (to be provided by all parties to the Mortgage Account)? Last 3 months personal bank statements Last 3 months business bank statements (if applicable) 2 most recent payslips or a copy of social welfare entitlement Other (as detailed in the cover letter) Additional information for self employed: Accountant certified latest annual accounts Accountant s confirmation of net income, remuneration, Trading status and shareholding

20 I/we understand that the information provided will only be used for the purpose of assisting Bank of Scotland plc and Pepper to assess my financial situation under its Mortgage Arrears Resolution Process. Privacy Statement Your information will be held by Bank of Scotland plc which is part of Lloyds Banking Group. More information on the Group can be found at How we share your information with group companies Your personal information will be shared within Lloyds Banking Group to enable us to run your accounts in the efficient way that you expect. Using your information for fraud prevention We will share your personal information from your application with fraud prevention agencies. If false or inaccurate information is provided and fraud is identified, details of this fraud will be passed to these agencies to prevent fraud and money laundering. Further details explaining how information held by the fraud prevention agencies may be used can be obtained by reading the privacy notice at general/ireland/index.html Undertaking credit searches We may obtain information about you from credit reference agencies and Group records to check your credit status. The credit reference agency enquiries may be seen by other companies making their own enquiries and may affect your ability to obtain credit elsewhere in the future. We may also use credit scoring. Undertaking credit searches on a joint applicant If this is a joint application you are giving us permission to search and record information in respect of you both, and create a link between your financial records at credit reference agencies which will remain until you successfully apply for a notice of disassociation at these agencies. Checking your identity We may ask you to provide physical forms of identity verification or search the files of credit reference agencies which will keep a record of our search, whether or not your application proceeds. This is not seen or used by lenders to assess your ability to obtain credit. Further information For further information please contact Commercial Data Privacy, Lloyds Banking Group, 1st Floor East, Tower House, Charterhall Drive, Chester CH88 3AN, United Kingdom. Your consent to process your information To understand how the personal information you give us will be used we strongly advise that you read our Privacy Statement, which you can find at or you can ask us for a copy. By continuing with this application, you agree to your personal information being used in the ways we describe. Please contact us if you have any questions. I declare that the information I have provided represents my/our financial situation, and commit to informing my lender if my situation changes. I consent to Bank of Scotland plc or Pepper conducting a credit reference check. Signed: Date: Signed: Date: Note: Declarations confirming the accuracy of the information provided and consent to a credit reference check must be completed for every SFS. Any other declarations requiring the consumer s signature (for example to give permission for the lender to contact other parties regarding the borrowers financial situation) must be optional (i.e., a lender cannot deem the SFS to be incomplete if such declarations are not signed by the consumer). 8

21 Consent Form Please complete this form and sign it to confirm the repayment arrangement you are requesting, that you clearly understand the Mortgage Arrears Resolution Process including the repayment options outlined in this pack and that you authorise Bank of Scotland plc or Pepper to complete the necessary checks to support your application. To Bank of Scotland plc Mortgage Account Number(s): (the Mortgage Account ) Client Name (Print): Client Name (Print): Please state the alternative repayment arrangement requested: Please note that although you may request a specific repayment arrangement, Bank of Scotland plc may decline this and may propose an alternative repayment arrangement better suited to your circumstances. State reason and time period required for the alternative repayment arrangement request: (please supply medical certificate if reason is due to illness.) I/We understand that although I/we have requested a specific repayment arrangement, Bank of Scotland plc may propose an alternative repayment arrangement better suited to my/our circumstances. I/ We confirm that I/we have read and clearly understood the Bank of Scotland plc Mortgage Arrears Resolution Process including the alternative repayment arrangement options outlined in this pack (Please retain this for information purposes). I/We authorise the Bank of Scotland plc or Pepper to complete the necessary checks (including credit checks) in order to facilitate an appl1cat1on for an alternative repayment arrangement. I/We understand that this is not an acceptance of any offer at this time, and Bank of Scotland plc is not liable for any charges on the Mortgage Account due to missed payments during the process of this application. Client Signature(s) if the mortgage is in joint names then both borrowers are required to sign this form. Contact Phone Number Best Time to contact you Contact address

22 Guiding Principles for completing the SFS 1. We at Bank of Scotland plc are fully committed to working with customers who are in, or are facing, financial difficulties with their mortgage repayments in order that a mutually-acceptable arrangement can be agreed. We will actively encourage contact with such customers through websites, media and printed material. 2. Pepper have specially-trained personnel in their offices including specialised telephone contact points, to deal with customers facing or in financial difficulties. 3. This Standard Financial Statement (SFS) is designed to assist you in setting out your current financial circumstances. 4. We consider that the completion of the SFS is a serious undertaking and we will work with you to ensure that the information is accurate, enabling us to work with you to determine the most appropriate and viable option in each particular customer case. 5. The easiest way to see where you stand financially is to gather all the relevant information and documents so that you can write down all the money you have coming in and going out each month and complete an SFS. (If your income is weekly, multiply it by 52 and divide the result by 12 to get your monthly income) 6. In the SFS you will have to provide information on your current income, expenses and other amounts you owe and any assets you own. It is important that you include all of your basic living expenses. You are also encouraged to ensure that you are maximising your income, including what social welfare entitlements you may be eligible for such as Mortgage Interest Supplement (see 7. It is important to fill out the SFS fully and accurately and to provide any relevant documentation that we may need to assess your situation; we will only seek information that is relevant to this assessment. 8. Your completed SFS and other factors relating to your case will be assessed by our Arrears Support Unit which will decide whether or not an alternative repayment arrangement is necessary and, if so, what type(s) of alternative repayment arrangement(s) appropriate to your circumstances can be made available. 9. If an alternative repayment arrangement is not offered to you, we will give you a reason for that decision in writing. You will have the right to appeal that decision; you may appeal to us initially and subsequently to the Financial Services Ombudsman in Ireland. 10. If you require further information, you can avail of support material available through a number of sources including our website ( or www. keepingyourhome.ie. You can also seek independent advice from MABS ( ie) or an appropriate alternative. If you give us your written consent we will liaise with a third party, nominated by you, to act on your behalf.

23 RETMORTMARP