During these unprecedented times, a significant number of people have been affected by Covid-19 not only physically and mentally but also financially. Due to the closure of many businesses nationwide, the Irish lenders have introduced a number of mortgage and loan forbearance options.
As lenders are working closely with the Central bank of Ireland, our understanding is that anyone who avails of a forbearance option will not have an adverse recording against their credit record.
Indeed, Governor Makhlouf of the Central Bank of Ireland wrote in an article recently highlighting that they are ‘’Working with lenders to develop practical measures so that the credit record of those who avail of a payment break includes an appropriate recording on the Central Credit Register so that their credit record is protected”.
We’ve compiled a table below which shows the various options lenders are extending to clients during these arduous times:
Additionally, all banks have raised the Tap limit from €30 to €50 per transaction.
We believe, the availability of these measures is necessary in these unprecedented times to give those affected by COVID-19 the necessary financial breathing space. It is however important to be aware of the implications. These include an increase in monthly repayments when the mortgage payment break period ends and an increase in the overall amount of interest that will ultimately be paid.’’
Put simply, let’s assume you owe €300,000 on your mortgage with monthly repayments of €1,500 and where the monthly interest portion is currently €1,000. You obtain a 3-month full capital and interest mortgage payment break., i.e.no mortgage payment made for 3 months. In effect, at the end of the 3-month period, your repayments are then based on €303,000 (now including €1k interest x 3 months) over the remaining term which is now 3 months shorter. Thus, giving rise to an increased monthly payment and a larger amount of interest paid.
We would also like to stress the importance of having a financial review at this point to see if previous arrangements, such as Life Policies and Mortgage Protection policies are still in line and suitable to your current and developing circumstances.
For details on how to contact our Life, Pensions and Investment side of the house, MoneyCoach, please find contact information at the end of this article.
See also below useful contact information and various lender webpage details for additional information:
Note: if your mortgage or loan facility etc is not with one of the above lenders, you will need to contact your loan servicer directly. See your recent mortgage statement or any other correspondence received for contact details.
As Ireland’s longest serving mortgage broker, Irish Mortgage Corporation has a vast amount of experience dealing with these lenders for the past 30 years. We have consistently advised and helped our clients through the best and the worst of times and are always here if you need us to advise you on the options available. Even if you haven’t dealt with us previously for your mortgage needs feel free to get in contact.
Should you have any queries whatsoever regarding an existing mortgage, life policy or any other type that you feel we might be able to help with, please do not hesitate to contact us. We are always delighted to help and are currently contactable via our website, email, phone, LinkedIn, Facebook and Instagram.
Irish Mortgage Corporation
Phone: 1850 444 474
Phone: 1890 428 343