Strict guidelines in mortgage arrears code

The new code of conduct on mortgage arrears contains strict new guidelines on how banks communicate with distressed customers and how tracker mortgages in arrears are treated.

The Central Bank has been in talks with different lobby groups over the past few months in an effort to come up with a code that was fit for purpose in view of the escalating mortgage crisis.

If a bank proves that a customer is not co-operating, then that customer is not protected by the code and legal proceedings for repossession can start immediately.