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.****

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
  • 3 month payment break available for COVID-19 affected customers.
  • Application can be made online.
  • Full payment breaks & interest-only breaks will increase monthly repayments over the remaining term to ensure mortgage will be repaid.
Contact AIB here, or call: 01 772 6609
Ulster Bank
  • 3 months break from mortgage repayments.
  • Full payment breaks & interest-only breaks will increase monthly repayments over the remaining term to ensure mortgage will be repaid.
  • 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 here or phone: 1800435 763
Bank of Ireland
  • 3 month payment moratorium, or interest only period is already available for customers not currently in arrears.
  • Full payment breaks & interest-only breaks will increase monthly repayments over the remaining term to ensure mortgage will be repaid.
Contact Bank of Ireland here or phone: 01 611 3333
Permanent TSB
  • No additional measures announced. 3 month payment breaks are already available.
  • Existing moratoriums & financial hardship measures may be available to customers in COVID-19 related difficulty.
  • Full payment breaks & interest-only breaks will increase monthly repayments over the remaining term to ensure mortgage will be repaid.
Contact Permanent TSB on: 1800 855 010
ICS
  • 3 month moratorium available for borrowers not in arrears.
  • Full payment breaks & interest-only breaks will increase monthly repayments over the remaining term to ensure mortgage will be repaid.
  • This 3 month break is open to both owner-occupiers and buy-to-let customers. 
Contact ICS here for their downloadable form, or call: 1890 542 542
EBS
  • 3 month payment breaks are available for affected customers.
  • Full payment breaks & interest-only breaks will increase monthly repayments over the remaining term to ensure mortgage will be repaid.
Contact EBS here, or call 1850 330 044  
Finance Ireland
  • 3 month payment breaks are available for affected customers.
  • Full payment breaks & interest-only breaks will increase monthly repayments over the remaining term to ensure mortgage will be repaid.
Contact Finance Ireland on: 1890 995 998
KBC
  • 3 month payment breaks available.
  • Full payment breaks & interest-only breaks will increase monthly repayments over the remaining term to ensure mortgage will be repaid.
  • Other financial difficulty measures are available.
Contact KBC on 1850 930 235, or email: [email protected]

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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