Most loan modifications in Ireland, such as temporary moves to interest only, term extensions, or arrears capitalisation can be assessed as combinations of these two.
A lot of discussion of the options for modifying mortgages can be couched in terms of one or other of these three changes in the time-path of contractual payments.8 But limiting the options to these is missing some important opportunities for borrower and lender. That’s why conditional payment schedules need to be kept in mind.