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Mortgage payment break to be extended

 

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Extension: Borrowers could get a six-month payment break, says Brian Hayes

Extension: Borrowers could get a six-month payment break, says Brian Hayes

Extension: Borrowers could get a six-month payment break, says Brian Hayes

Banks and other lenders are in discussions with the regulator about extending mortgage repayment breaks to six months to help homeowners cope with the impact of the coronavirus.

Talks are taking place between the Banking and Payments Federation and the Central Bank in a bid to see if the payment breaks can be extended.

Currently, lenders are offering three-month payment breaks, but interest is still charged for these months, which has led to criticism of the banks. However, the Central Bank has ensured the non-payment of the capital amount of the mortgage is not recorded as a negative for consumers on the Central Credit Register.

So far, 45,000 payment breaks have been agreed between the five main banks and borrowers, said Brian Hayes, chief executive the Banking and Payments Federation.

Many European banks are offering six-month payment breaks to aid people hit by the fallout of the pandemic.

Mr Hayes confirmed discussions are taking place with the Central Bank to allow the main banks, non-bank lenders and credit servicing firms to offer six-month payments.

The talks with the Central Bank centre around the regulatory treatment of those who would continue to receive breaks.

Asked if someone taking a six-month payment break would have that recorded on their credit record, he said: "The expectation is that there would be no impact on credit records. Who would want it if there was?"

Irish Independent