Over the last week, the government and banks have announced that they will offer mortgage breaks to customers impacted by Coronavirus.
On 18th March, the government announced that lenders should offer a mortgage break of up to three months.
A moratorium or mortgage break is a temporary break from, or reduction of, your mortgage repayments. The aim with this particular three-month break is to give mortgage-holders options during times of financial stress.
Anyone who has been impacted by coronavirus and in most cases who are up to date on their mortgage payments, can apply for a mortgage break.
What happens to the repayments that I do not make?
In a mortgage break or moratorium situation the mortgage-holder effectively defers the mortgage repayment for the period agreed. These deferred repayments are effectively capitalised and spread over the remaining mortgage term.
You should be aware that this could mean you pay slightly more interest due to the fact that the capital balance at the end of the moratorium will be higher.
Will this affect my credit rating?
In normal course a moratorium is reflected on the Irish Credit Bureau or CCR as Terms Amended and can affect your ability to switch your mortgage or borrow further as most lenders require mortgage repayments to be made in full interest and capital for 12 months.
In the current circumstances where it is clear that the moratorium was applied as a forbearance measure due to this specific crisis the lenders have noted they will look to make a concession to standard rules and reporting. Each lender will have specific terms regarding any future lending.
If you feel that you can continue to make your mortgage repayments but would like to reduce repayments then please see our switch and save calculator.
How do I apply for a mortgage break due to financial impact of Coronavirus?
If you currently have a mortgage, the first stop is to get in touch with your lender and outline your current position and the reason for the payment request break.
Contact details for support lines and information for each mortgage lenders is as below –
Bank of Ireland
- Payment Break Application
- Request a link to the payment break web page and application form Text “mortgage” to 50365
- Or Phone 01 6113333
AIB
- Online form for application
Haven Mortgages
- Customers must call us on 1850 654 329 or +353 1 665 8082
Finance Ireland
- For support re Coronavirus support 1890 995 985
Ulster Bank
- Customers wishing to request this should call the Support Unit on 1800 435 763 or +353 1 7092118 from outside Ireland. The team is available 9am to 5pm Monday to Friday.
- Customers can also email [email protected] to request a call back relating to a mortgage repayment break within 24 hours.
PTSB
- Contact 0818 502 424 or +35312124101
- See website
KBC
- A dedicated KBC team has been established to help customers with any financial concerns or questions they have regarding COVID-19. This team can be contacted on 1850 93 02 35
- See press release
EBS
- For information and support please click here
