06 Oct 2022

Mortgage payment break for local authority home loan borrowers will be extended by a further three months

Government to meet pillar bank chiefs today to discuss extending mortgage breaks

Mortgage payment break for local authority home loan borrowers will be extended by a further three months

The mortgage payment break already in place for local authority home loan borrowers will be extended for those continuing to face difficulties due to the Covid-19 emergency, a Fine Gael Minister has said. 

Peter Burke, who is Minister in the Department of Housing, said: “Local authority home loan borrowers could already avail of two payment breaks totalling up to six months and borrowers who take up a third payment break will be contacted by their local authority during the payment break to assess their financial situation and discuss options if necessary. I commend Longford County Council for their engagement with borrowers and tenants and the solutions that have been put in place during this crisis.

“Due to the continuing economic uncertainty associated with COVID-19, many local authority home loan borrowers continue to face difficulties in paying their mortgage or have very real fears that they will face repayment problems in the future. What we originally thought would be a short term crisis, has now extended well into the year and it is clear that COVID 19 will still affect employment in the coming months.

“To help people in this situation, the mortgage payment break period is being extended by another three months, allowing people a total of nine months to get back on their feet.

“The deadline for applying for a payment break until the end of 2020 is also being extended to provide for borrowers who may yet suffer setbacks in the coming months.

“The simplified application process in place allows borrowers in distress to access a payment break quickly.

“Any local authority home loan borrower facing difficulties due to COVID-19 are urged to contact Longford County Council as soon as possible, in particular, to access the application form and information that will be available on each local authority’s website. 

“Importantly, no additional costs to the original home loan balance arise for the borrower who avails of these measures, as borrowers are not charged interest for the period of the breaks,” Minister Burke said.

“Separately, I know my colleague Paschal Donohoe is meeting the pillar banks today to discuss the continuation of payment breaks for mortgage customers who are still out of work through no fault of their own. I have discussed the importance of extending this mortgage break and providing solutions for customers in the coming months with Minister Donohoe. People need breathing space while the economy gets back on its feet and we must do everything we can to encourage the banks to provide this.”

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