The Financial Regulator today amended the code of conduct of mortgage arrears by increasing the moratorium from six months to 12 months.
The move has been welcomed by the Finance Minister, who said the extension was consistent with the arrangements under the recapitalisation agreement for Bank of Ireland and AIB.
'The Financial Regulator's decision to extend this moratorium to all the lenders it regulates is a positive response to the request in my Budget speech in December,' commented Finance Minister Brian Lenihan.
'It is a decision that takes account of the changed circumstances facing some homeowners as a result of rising unemployment and reductions in income,' he added.
The moratorium of 12 months will apply only when the mortgage holder engages with the lender in dealing with arrears. It will start from the date the borrower first goes into arrears.
