Details of the new AIB debt write-down scheme

The information available at present is limited and the only thing we were able to obtain in terms of hard fact is that people on trackers won’t lose their tracker in this process.

Background info:
 
This is a variant of our split product and it can provide for upfront partial compromise of principle debt and a right sizing of the loan. It will contain features that incentivise and reward repayment of the loan B in advance of maturity.
 
It will also provide an opportunity for the customer to earn a ‘reward’ in the form of principle debt reduction if they keep to the terms of their A loan.  
 
There is security of tenure built in as a feature for as soon as the borrower lives in the property.
 
Key details:  
 
This is not a self-selected product. It will suit a certain, limited cohort of borrowers for which standard forbearance does not work.
If standard forbearance works it will not be offered.
 
This split represents a final attempt to keep people in their homes where there is some level of affordability.
 
It is entirely based on an assessment of affordability after the calculation of net disposable income after reasonable living expenses. It is only for cooperating customers and those who provide full disclosure. 

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