KBC Bank Ireland is piloting mortgage arrears resolution options with customers who are experiencing difficulty in meeting their mortgage repayments.
The options being piloted include a loan term extension option and a three-year interest only mortgage solution.
“KBC is continuously assessing the solutions it provides to customers in difficulty. We plan to identify the most appropriate solutions through our pilot programmes with customers. Once this process is complete, KBC will offer solutions to customers based on their specific financial needs which will be assessed on a case by case basis,” said John Reynolds, CEO KBC Bank Ireland.
“As always the first step for all customers is to engage with the bank and provide us with up to date financial information to allow us to carry out an informed assessment of the customer’s current circumstances.”
KBC Bank Ireland has developed a programme for all mortgage customers, including advertising, direct marketing, brochure ware, website material and video guides.
The bank is also reviewing a three-year, interest-only option where the contracted payment will be equal to 100pc of the interest component due on the facility, for a period of three years. During this period, the capital balance on the facility will remain static.
KBC Bank Ireland is also working with the relevant government bodies to introduce a mortgage to rent scheme for customers with unsustainable mortgages. Further resolution options such as the split mortgage will be piloted throughout the remainder of 2012.