Extra protection for mortgage holders in arrears

The Code of Conduct on Mortgage Arrears has been revised to give additional protection to homeowners in difficulty.

Lenders have been directed not to impose arrears charges or extra interest on borrowers who are behind on repayments - but co-operating with the new Mortgage Arrears Resolution Process.

The measures also prevent banks from forcing customers to change from a tracker to another mortgage type as part of a new arrangement.

The Central Bank says the changes - which will take effect from January - have been made in light of the recommendations from the Government's Expert Group on Mortgage Arrears and Personal Debt.