From: Kieran O’Donnell Monday 28th September 2020
Mortgage payment break for local authority home loan borrowers will be extended by a further three months – O’Donnell
-Main Banks must follow suit and provide similar 3 month break to hard-pressed mortgage holders.
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, Limerick & North Tipperary Fine Gael TD Kieran O’Donnell has said.
Deputy Kieran O’Donnell 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 am calling on the main banks to follow this sensible lead from the local authorities and provide a similar 3 months payments break to hard-pressed mortgage holders. The Governor of the Central bank, Gabriel Makhlouf has said that there was nothing stopping banks giving payments breaks. Therefore, I believe the banks need to step up to the plate and extend the loan moratorium periods further.
“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.
“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 their local authority 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,” Deputy O’Donnell said.