Borrowers who have been hit financially by Covid-19 could be offered a six-month break on their mortgage payments if talks between the banks’ lobbying body and the Central Bank of Ireland are successful. At present, customers who have been negatively affected by the pandemic can apply to their lenders for a three-month break in payments, without being classified as in arrears. To date some 45,000 payment breaks have been agreed between lenders and borrowers, amounting to about 5 per cent of all home loans in the market. In some EU member states, banks offered a six-month payment break as a first measure, which is permitted in guidelines published by the European Banking Authority. “We’ve always made it clear that this is not a moratorium, it’s not a holiday, it’s simply a payment break, which we can provide for under the existing codes and under the EBA [rules].

Source: The Irish Times April 15, 2020 14:30 UTC