Coronavirus & mortgage repayments.
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 – 03/04/2020
Minister for Finance Paschal Donohoe met with representatives of Bank of Ireland, AIB, KBC, Permanent TSB and Ulster Bank in March, 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 affected by COVID-19. Please contact your lender, and make sure you get to speak to an informed member of staff.
- Lenders have streamlined the application process, allowing online applications. Beware, the phone lines are very busy.
- Will a payment break affect your credit rating? No. Agreed payment breaks will not be recorded as ‘missed payments’.
- Most lenders are extending the payment break option to buy-to-let borrowers.
- Remember that all named parties on a loan will need to give consent for this payment break application.
Link to RTE news
****Greenway Financial Advisors will continue to update this page as the lenders clarify their supports for borrowers.****
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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.
|Bank||Coronavirus Measure||How to Apply|
|AIB||Contact AIB here, or call: 01 772 6609|
|Ulster Bank||Contact Ulster Bank here or phone: 1800435 763|
|Bank of Ireland||Contact Bank of Ireland here or phone: 01 611 3333|
|Permanent TSB||Contact Permanent TSB on: 1800 855 010|
|ICS||Contact ICS here for their downloadable form, or call: 1890 542 542|
|EBS||Contact EBS here, or call 1850 330 044|
|Finance Ireland||Contact Finance Ireland on: 1890 995 998|
|KBC||Contact KBC on 1850 930 235, or email: [email protected]|
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