Coronavirus mortgage repayment

Coronavirus & mortgage repayments.

Coronavirus mortgage repayment, If you’re reading worrying stories about quarantines, and coronavirus, it’s important to know how this affects your mortgage. While some of us work in jobs we can do remotely, a lot of people can’t. Equally, if you’re placed under quarantine, and can’t work, you can’t claim illness benefit & sick pay unless you actually become ill.

If you find yourself suffering financial difficulty in the future, due to the effects of Covid-19, many lenders have put new policies in place for mortgage breaks and other assistance. Bear in mind, these may only apply if you can directly show that the difficulty was Covid-19 related.

Warning! If you’re in any kind of difficulty, don’t just stop making payments! There are protections in place for mortgage customers in financial hardship, but you must contact your bank first, and engage with them.

UPDATE – COVID-19 / Coronavirus Mortgage Repayments – 19/03/2020

Minister for Finance Paschal Donohoe met with representatives of Bank of Ireland, AIB, KBC, Permanent TSB and Ulster Bank this week, regarding how COVID-19 will affect Mortgage Holders. The main points of this meeting are as follows:

• Payment breaks of up to 3 months will be offered to mortgage holders. Please contact your lender, and make sure you get to speak to an informed member of staff.
• The application process for a payment break is still complicated, involving long forms. Lenders are currently working to streamline this process.
• Will a payment break affect your credit rating? Right now, yes, but the lenders are meeting with the Central Bank of Ireland to resolve this, as this is an unprecedented situation.

Link to RTE news 

The Mortgage Arrears Resolution Process (MARP) is a code of conduct for how lenders have to treat borrowers in difficulty, but it cuts both ways. You have to make sure that you engage with the process, which is known as being ‘co-operative’. Read more about it on the Citizens Advice Website: https://www.citizensinformation.ie/en/housing/owning_a_home/mortgage_arrears/mortgage_arrears_resolution_process.html

Remember, taking a payment break on your mortgage will not reduce the overall amount due. Your term may be extended, or your monthly repayment increased.