Banking & Payments Federation Ireland
The voice of banking and payments in Ireland
Information for homeowners impacted by defective concrete blocks
BPFI members stand ready to support homeowners who are impacted by the presence of defective materials in their properties.
The sector continues to engage with relevant stakeholders to support homeowners in the remediation of their properties.The information below is provided to assist homeowners in the process and to inform of the various supports that are available.
I have had the presence of defective material in my home confirmed to me. Do I need to notify my lender?
There is no obligation on an impacted homeowner to inform their mortgage provider or mortgage servicer that there has been confirmation of defective materials in their property. However, we encourage impacted homeowners to make their mortgage provider or servicer aware, so that any necessary supports can be made available or to facilitate the application process, including to provide confirmation of what documentation will be needed, if additional funding will be required to remediate your property. Information can also be provided in relation to considerations regarding Course of Construction insurance and regarding loan schemes that might be relevant.
Contact details for BPFI members are included below.
Should I talk to a lender about accessing credit before I apply for the Scheme?
We would encourage impacted homeowners to proceed with applying for the Scheme and having clarity on any funding that they will have approval for prior to contacting their lender regarding credit.
The amount of funding I have been approved for under the Enhanced Defective Concrete Blocks Grant Scheme (the Scheme) won’t be enough to cover the remediation costs. What should I do?
If additional funding is needed to remediate your property, you should contact a lender to understand what credit products are available and what you might be able to apply for.
If you need additional credit, you will need to make an application to a lender and your application will be assessed in line with current lending criteria to understand your ability to repay.
It may also be the case that many impacted homeowners do not have a mortgage but will need additional funding also. If this is the case, again we encourage you to engage with a lender who will be able to outline the options available regarding a credit application or other supports available e.g., if you are in financial difficulty.
If I intend to apply for credit, what information will I need to provide to the lender?
Different lenders have different requirements however, the majority will require the following information at application stage:
Proof of income – You will need to provide proof of your current income to show you can repay the loan. The requirements may vary between lenders, but generally you will have to provide a Salary Certificate or a Statement of Earnings.
You will also be required to provide bank statements, to show the pattern of your income and expenditure, the balance of funds, regular savings pattern and repayment capacity.
Proof of approved grant funding – Confirmation of approved funding under the Scheme will also be required.
Construction costs and planning permission – Confirmation of the cost of remediation and evidence of the grant of planning permission, if required.
Verification of identity – You will need to provide proof of your identification (a current valid passport or Irish, UK, or European driver’s licence), proof of your address (a utility bill, a bank statement or insurance document) and proof of your Personal Public Service Number (PPSN) (a payslip or Department of Social Protection/Revenue Commissioners correspondence).
Why do I need to provide my PPSN?
Proof of your PPSN is required for the purpose of conducting a credit check on the Central Credit Register (CCR).
The CCR records the information that lenders submit about any loans (over €500) that a borrower has. The information kept is factual, and it includes both positive information (when you have made a repayment) and negative information (when you may have missed a repayment).
Lenders must check the CCR for a credit report on a borrower if the borrower applies for a loan of €2,000 or more.
A borrower has certain rights regarding the information held about them on the CCR including the right to:
- Insert an explanatory statement on their credit report – up to 200 words. You can get more information here.
- Apply to have their information changed – if the information is inaccurate, incomplete or out of date.
- Report and be told about suspected impersonation – if your details have been used by another person to impersonate you.
- Obtain their credit report – at any time, free of charge, if they are an individual.
- Submit a request for a credit report once a year free of charge if borrowers are not individuals (for example, companies). There is a small charge for subsequent requests within the year.
More information on the CCR is available online here.
When my property is remediated, will I be able to sell it?
In considering whether or not to approve a mortgage on a remediated property, BPFI members (including AIB, EBS, Haven, Bank of Ireland and PTSB) will consider the following:
- Certification provided in relation to remediation works will be taken to mean that the works have been carried out in line with the remediation works plan and with the requirements of the Second Schedule to the Building Regulations, as relevant.
- The 40-year guarantee in respect of options 2 to 5, as set out in the Letter of Assurance provided in line with Schedule 11 of the Act.
- Confirmation from the Department of Housing that where a remediated property (under options 2 to 5) is sold and damage later occurs due to defective materials in retained blockwork, the new homeowner will be able to access the Scheme to remediate the property.
- The sign-off and certification by engineers, valuers, surveyors, insurers, conveyancing solicitors and any other party involved in the conveyancing transaction process, as would be standard for any property.
The same applies in the context of future sales of remediated properties; switching of mortgages attached to remediated properties (noting that separate requirements are necessary to be deemed eligible to switch including repayment history, sustainability of income etc.); and future top-ups not connected to remediation of properties, subject to normal lending criteria and creditworthiness assessment of the borrower.
My property is damaged due to the presence of defective materials. Does this mean that I am in breach of the terms and conditions of my mortgage contract?
We are aware of the concern that impacted homeowners have in relation to potential breaches of the terms of mortgage contracts.
We have confirmed that the mortgage clause(s) referred to will not be invoked in circumstances where the damage to the mortgaged property is due to the presence of defective materials in the property, and where demolition or part demolition occurs to permit remediation of the property. This will apply in advance of and during the remediation of impacted properties.
In confirming this position, BPFI and members intend that impacted homeowners will not need to engage to seek individual letters of confirmation in relation to the clause referred to above. However, if any homeowner still wishes to seek a letter of confirmation, this will be provided on request from the relevant mortgage provider or servicer.
It should also be noted that the remediation of properties under options 2 to 5 inclusive, which result in the retention of blockwork from the original structure, does not constitute a breach of the terms and conditions of the mortgage contract whereby the clause referred to would be invoked.
Following remediation of properties, the relevant clauses will continue to apply.
I am unable to get insurance cover for my property because there is defective material in it. Does this mean that I am in breach of the mortgage contract?
We are aware that in many instances, insurance cover cannot be secured due to the presence of defective materials in the property. Again, the homeowner will not be considered in breach of the mortgage conditions due to the inability to get insurance cover because of the presence of defective materials in the property.
However, it is recommended that self-build or “course of construction” insurance cover is secured when remediation commences. Following the remediation process, the requirement to have insurance cover in place will continue to apply. Remediated properties must have insurance cover to be mortgageable.
What is the best way to contact a lender/my mortgage provider/my mortgage servicer?
If you need to discuss your situation with a lender or with your mortgage provider/servicer, the contact details below have been provided by BPFI members to assist you.
Contact Details
AIB – dcb@aib.ie
Bank of Ireland – mica@boi.com
BCM Global – customercontactcentre@bcmglobal.com (01-654 8800)
Cabot Financial – ASU@cabotfinancial.ie
EBS – dcb@mail.ebs.ie
Haven – dcb@mail.ebs.ie
Mars Capital – info@marscapital.ie – For former Start Mortgages customers – Start@marscapital.ie – (01 209 6300)
PTSB – micaqueries@ptsb.ie – (1800 855 010) (021-6013800) Any local ptsb branch will also support applications for further advances or forbearance. Support is also available by contacting the Arrears Support Unit, if the customer is in financial difficulty or is at risk of going into financial difficulty.
What other information should I be aware of?
Mental Health Support
MyMind is an organisation that offers counselling, psychotherapy and psychological support sessions to DCB-impacted homeowners in Counties Donegal, Mayo, Clare and Limerick, with the aim of supporting occupants of homes that have been damaged due to the use of defective concrete blocks. The service is offered free of charge to those who have registered through their local council with the Scheme. View here.
Citizens Information
The Citizens Information website has helpful information about the Scheme and how to apply for it on its website. View here.
Sustainable Energy Authority of Ireland
The Sustainable Energy Authority of Ireland (SEAI) has information on its website regarding grants available to DCB-impacted homeowners. This webpage has all the information needed to inform in relation to accessing support available from the SEAI for home energy improvements. View here.
Home Energy Upgrade Loan Scheme
The Strategic Banking Corporation of Ireland (SBCI) is offering a Home Energy Upgrade Loan Scheme, which is provided to consumers through the retail banks. The loan is guaranteed by the European Investment Fund (EIF) and the European Investment Bank (EIB), and is supported by the Department of Energy, Climate and Communications. Eligibility criteria have been set in relation to accessing the loan, (e.g., the customer must be doing energy efficiency upgrades on a property and the upgrades are being part funded by a grant from the SEAI) and consumers will be assessed on these prior to being able to access funds through the scheme. More information is available on the websites of the SEAI and the three retail banks, as below.
SEAI – https://www.seai.ie/grants/home-energy-grants/home-energy-upgrade-loan
AIB – https://aib.ie/sbci-heuls
Bank of Ireland – https://personalbanking.bankofireland.com/borrow/loans/home-energy-upgrade-loan-scheme/key-features/
PTSB – https://www.ptsb.ie/borrowing/sbci-heuls-loan/
Government information
The Government has information available online regarding the Scheme, including in relation to the eligibility requirements, remediation options, the funding available, and how to apply.
https://www.gov.ie/en/service/8002e-enhanced-defective-concrete-blocks-grant-scheme/
There is also a very informative guide available online called “Your Questions Answered”, which is available at the link below.
The Housing Agency, which acts as an agent of the local authorities, has information on its website in relation to the Scheme.
https://www.housingagency.ie/housing-information/defective-concrete-blocks-grant-scheme
Local Authorities
Each of the relevant local authorities also provide information for impacted homeowners, including contact information.
Donegal Co Co – https://www.donegalcoco.ie/defectiveconcreteblocks/
Donegal County Council provides details for community facilitators, who are available to assist homeowners with their applications under the Scheme.
Mayo Co Co – https://www.mayo.ie/housing/defective-concrete-blocks-grant-scheme
Limerick Co Co – https://www.limerick.ie/council/services/housing/grant-schemes-for-housing/defective-concrete-blocks-grant-scheme
Clare Co Co – https://www.clarecoco.ie/services/housing/dcb-scheme/about-the-scheme/
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