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 

Why Get Financial Advice?

When you have a big decision to make, or your life is changing there’s a lot to think about.

Impartial professional financial advice helps you make a better decision that gives you better options and saves you money for the rest of your life. 

How we can help you

  • Get your personal financial plan in place.
  • Increase your monthly & annual savings.
  • Plan for a secure retirement.
  • Buying a home or investment property.
  • Protecting your family.

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. 

BankCoronavirus MeasureHow to Apply
AIB
  • No specific measures, but a 6 month payment moratorium, or interest only period is already available for their customers.
Contact AIB
Ulster Bank
  • 3 months break from mortgage repayments.
  • Waiver of fee to access fixed-term deposit accounts.
  • Option to apply for overdrafts & increased credit card limits.
  • Waiver of fee for credit card cash withdrawal in emergency.
Contact Ulster Bank
Bank of Ireland
  • No specific measures, but a 3 month payment moratorium, or interest only period is already available for their customers.
Contact Bank of Ireland
Permanent TSB
  • No additional measures announced.
  • Existing moratoriums & financial hardship measures may be available to customers in difficulty.
Contact Permanent TSB
ICS
  • No additional measures announced.
  • 3 month moratorium available for borrowers not in arrears (this will increase the remainder of your repayments).
Contact ICS
EBS
  • No new measures announced, EBS arrears issues are dealt with under the existing Mortgage Arrears Resolution Process (MARP).
Contact EBS
Finance Ireland
  • No new measures announced, Finance Ireland arrears issues are dealt with under the existing Mortgage Arrears Resolution Process (MARP).
Contact Finance Ireland
KBC
  • 3 month payment breaks available.
  • No new measures announced.
  • Other financial difficulty measures are available.
Contact KBC

About Debbie Cheevers

Debbie qualified as APA in 2017 and a fully qualified financial advisor (QFA) in 2018. She believes that product knowledge is key to helping customers make the right choices.

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