Housing Services

Frequently Asked Questions

• What is a Local Authority Home Loan Mortgage Payment Break?

  A local authority home loan Mortgage Payment Break means that no repayments are made to your home loan account for the Mortgage Payment Break period. Your home loan account is paused.

  • No interest is charged during the Mortgage Payment Break period.

  • The term of your home loan remains unchanged (i.e. if the original term/maturity date

    is July 2035 – this will remain at July 2035).

  • Your home loan repayments recommence after the Mortgage Payment Break period

    at a higher amount than before the Mortgage Payment Break. This is necessary to

    ensure that your home loan will be repaid in full within its original term.

  • Mortgage Protection Insurance Payments will need to be maintained and

    arrangements for same must be agreed directly with your local authority.

• Am I eligible for a Mortgage Payment Break?

  You are eligible for a Mortgage Payment Break on your local authority home loan if you have had a reduction in your income arising from the COVID-19 emergency, or are anticipating a reduction, and you are unable to make repayments on your home loan.

  This mortgage payment break is also open to local authority borrowers who are currently in arrears and further impacted by Covid-19. In this case you must be currently engaging with your local authority in relation to your arrears and complying with relevant conditions set by them.

  However, it is recognised that some borrowers may have already entered into arrears arising out of the COVID-19 emergency and not yet entered into a repayment plan. If you have entered into arrears from March 2020 you are considered eligible to apply for a mortgage payment break.

  You should only apply for a mortgage payment break if you consider that you need it. Independent financial advice is available through the Money Advice and Budgetary Service (MABS). Please see www.mabs.ie to find details of your local office.

  Please note that if you are applying for your fourth payment break you must have engaged with your local authority about your financial situation during your third payment break. Your local authority should contact you about this.

• Can I apply for a Mortgage Payment Break if I am currently in arrears?

  The mortgage payment break is also open to local authority borrowers who are currently in arrears and have suffered (or are likely to suffer) a Covid-19 related income loss. However, you must be currently engaging with your local authority in relation to your arrears and complying with relevant conditions set by your authority, or, have only entered into arrears from March 2020. Please see answer to Q2 also.

• Can I apply for a Mortgage Payment Break if I have already missed a repayment because of Covid-19?

  Yes. You may apply for a Mortgage Payment Break if you have missed a repayment from March 2020 because of a loss of income due to Covid-19. However, you will need to discuss with your local authority how the missed repayment will be treated as the Mortgage Payment Break cannot be backdated.

• How do I apply for a Mortgage Payment Break?

  To apply for your first Mortgage Payment Break (or for your second, third or fourth Mortgage Payment Break), you can download the relevant application form from your here.

  Alternatively, you can request an application form to be posted to you – please call your local authority to arrange this.

  The application form must be completed in full. If your form is incomplete, your local authority will notify you as quickly as possible. The Mortgage Payment Break cannot be processed without receipt of a completed application form.

  While four combined Mortgage Payment Breaks totalling up to 12 months is available, you must apply four times. You must initially apply for three months and then, if required, a second Mortgage Payment Break may be applied for, and then, if required, a third Mortgage Payment Break may be applied for. A fourth Mortgage Payment Break may be provided for if your income continues to be impacted by COVID-19. Therefore, the total maximum duration of the four Mortgage Payment Breaks is 12 months.

• How do I return my application?

  You can return your application form for each of the four Mortgage Payment Breaks by email, by post or by hand to your local authority, subject to HSE COVID-19 guidance.

  Further details are contained within the application form. It should be noted that for the duration of Government COVID-19 guidelines, public offices may be closed.

  This may cause a delay to those applications submitted by post or by hand to local authorities.

• Can I stop my monthly repayment now?

  No. You must continue to make your home loan mortgage repayments in full until you receive notification that your Mortgage Payment Break application has been approved.

• How will I know if I have been approved for a Mortgage Payment Break?

  For each of the four Mortgage Payment Breaks, your local authority will send you a Notification of Approval by email within five working days of receiving your completed application form. The Notification of Approval will include the following details:

  • Confirmation of approval;
  • Your Mortgage Payment Break
  • The revised/higher amount of your repayments after the Mortgage Payment Break;
  • Confirmation of your home loan term/maturity date;
  • Indicative saving (based on full repayment as demanded by your local authority).
  • Declaration and Acceptance Form

  You must return the signed Declaration and Acceptance Form within 15 working days of date of issue. After this period the approval is no longer valid for the Mortgage Payment Break. If your form is incomplete, your local authority will notify you as quickly as possible.

• How long do I have to decide after receiving the Notification of Approval?

  You must return the signed Declaration and Acceptance Form within 15 working days of the date of issue. If the local authority has not received your signed Declaration and Acceptance Form within 15 working days of sending it the Notification of Approval letter is no longer valid. The local authority will write to you advising that your Notification of Approval has been withdrawn.

• What happens to my monthly repayments during a Mortgage Payment Break?

  If you currently pay your mortgage repayment by Direct Debit your local authority will stop requesting the mortgage element of the payment from your bank for the duration of the Mortgage Payment Break. Equivalent arrangements will apply where payment is not made by Direct Debit. For the majority of borrowers, the monthly loan repayment also includes an amount for Mortgage Protection Insurance; you must maintain your Mortgage Protection Insurance

• What happens my Mortgage Protection Insurance?

  Applications received after 26 June 2020, will be required to maintain their MPI payments during their four Mortgage Payment Breaks.

   

  Borrowers who applied for their first three month Mortgage Payment Break prior to 26 June 2020 may have chosen to pause MPI payments and your local authority should have contacted you with repayment options for the relevant amounts. If payment is not made to your local authority as agreed your insurance may be invalidated.

   

  In the interim, your MPI premium will continue to be paid on your behalf by your local authority and your insurance cover will remain in place for the duration of the Mortgage Payment Break. For information, the MPI premium is generally a small proportion of your monthly repayment, the large majority of which is the mortgage repayment.

   

  If you applied for a Mortgage Payment Break prior to 26 June 2020 and chose to stop your MPI repayments for the first Mortgage Payment Break then you will be required to repay the outstanding MPI premium amount by 18 December 2020, which would make the amount of the repayment (for 2020 only) higher than the figure shown overleaf.

• What is the financial impact of a Mortgage Payment Break?

  The table below sets out, for illustrative and indicative purposes only, the financial impact of a three, six, nine and 12-month Mortgage Payment Break on a home loan with a balance of €100,000 owing with a remaining term of 15 years, at an indicative interest rate of 2.30%. These calculations are based on Mortgage Payment Breaks running back to back.

   

   

  Notes: Table 1 – Indicative Example	1st Mortgage Payment Break	2nd Mortgage Payment Break	3rd Mortgage Payment Break	4th Mortgage Payment Break
  Home Loan Balance	€100,000	€100,000	€100,000	€100,000
  Term End Date	30/04/2035	30/04/2035	30/04/2035	30/04/2035
  Current Mortgage Repayment Amount	€657	€657	€657	€657
  Mortgage Payment Break Start Date	01/05/2020	01/05/2020	01/05/2020	01/05/2020
  Mortgage Payment Break End Date	31/07/2020	31/10/2020	31/01/2021	30/04/2021
  Repayment Restart Date	01/08/2020	01/11/2020	01/02/2021	01/05/2021
  Home Loan Balance after Mortgage Payment Break	€100,000	€100,000	€100,000	€100,000

   

   

  • For a three month Mortgage Payment Break, your repayments increase from €657 to €667 – or by €10 per month - because you repay your home loan balance over a shorter term (i.e. over 14 years and nine months instead of over 15 years).
  •  For a second three month Mortgage Payment Break, your repayments increase from €657 to €676 – or by €19 per month - because you repay your home loan balance over a shorter term (i.e. over 14 years and six months instead of over 15 years).
  •  For a third three month Mortgage Payment Break, your repayments increase from €657 to €686 – or by €29 per month - because you repay your home loan balance over a shorter term (i.e. over 14 years and three months instead of over 15 years).
  •  For a fourth three month Mortgage Payment Break, your repayments increase from €657 to €697 – or by €40 per month - because you repay your home loan balance over a shorter term (i.e. over 14 years instead of over 15 years).
  •  These indicative calculations are based on an interest rate of 2.30% for the remaining term of the home loan. Variable interest rates are subject to change.
  •  These indicative calculations do not include Mortgage Protection Insurance (MPI) premia.
  •  These indicative calculations do not take into account Tax Relief at Source (TRS).

   

• What will happen to my home loan balance during a Mortgage Payment Break?

  Your home loan balance will not increase over the period of the Mortgage Payment Break.

• What happens to my monthly repayments at the end of a Mortgage Payment Break?

  Four Mortgage Payment Breaks each of three months duration are permitted bringing the combined total of the four Mortgage Payment Breaks up to a maximum of 12 months. At the end of the first Mortgage Payment Break, if you have already availed of one Mortgage Payment Break, or previously completed that Mortgage Payment Break, you can either:

   

  • Recommence your full home loan monthly repayments, which will be marginally higher than before the break; or
  • Apply for a second Mortgage Payment Break. You must apply to your local authority for your second Mortgage Payment Break.

  At the end of the second Mortgage Payment Break, if you have already availed of a second Mortgage Payment Break, or previously completed that Mortgage Payment Break, you can either

  • Recommence your full home loan monthly repayments, which will be higher than before the break; or
  • Apply for a third Mortgage Payment Break, bringing the total combined duration of the three Mortgage Payment Breaks to date up to a maximum of 9 months. You must apply to your local authority if you wish to avail of a third Mortgage Payment Break.

   

  During your third Mortgage Payment Break, the local authority will engage with you to review your financial circumstances. At the end of your third Mortgage Payment Break, if you have already availed of a third Mortgage Payment Break, or previously completed that Mortgage Payment Break, you can either

  • Recommence your full home loan monthly repayments, which will be higher than before the break; or
  • Apply for a fourth Mortgage Payment Break, bringing the total combined duration of the four Mortgage Payment Breaks up to a maximum of 12 months. You must apply to your local authority if you wish to avail of a fourth Mortgage Payment Break.
  • If it is unlikely that your financial situation will have improved by the end of a third Mortgage Payment Break, a longer term arrangement through the Mortgage Arrears Resolution Process (MARP) may be more appropriate, see question no. 33. Your local authority will discuss alternative payment arrangements with you.

   

  During your fourth Mortgage Payment Break, the local authority will engage with you to review your financial circumstances. At the end of your fourth Mortgage Payment Break, you must recommence your full home loan monthly repayments. Your monthly repayments will increase. This is necessary to ensure that your home loan will be repaid in full within its original term. Your Notification of Approval(s) will include the revised/higher amount of your repayments after the Mortgage Payment Break(s).

   

  As soon as you realise that your financial circumstances have not improved and you may be unable to recommence paying your full monthly repayments, you should notify your local authority immediately who will discuss alternative payment arrangements with you. Please see question no. 33 re Mortgage Arrears Resolution Process (MARP).

   

• What happens during the third and fourth Mortgage Payment Breaks?

  During the third and fourth Mortgage Payment Break, your local authority will contact you to discuss and assess your financial circumstances. You are obliged to engage with them.

• Will my home loan interest rate change if I take a Mortgage Payment Break?

  If you are on a fixed rate home interest loan, your home loan interest rate will not change because you take a Mortgage Payment Break. However, if you have a variable interest rate home loan and there is a rate change during your Mortgage Payment Break period, your home loan variable rate will change to the new rate.

• Will a Mortgage Payment Break affect my credit record?

  A Mortgage Payment Break will not adversely impact on your credit record. However, if you are already in arrears before the Mortgage Payment Break it may affect your credit record.

• Can I extend my first, second or third Mortgage Payment Break if I need to?

  If your financial circumstances have not improved and you wish to apply for a second, third or fourth Mortgage Payment Break, you may do so. You may apply for a total of four Mortgage Payment Breaks, each lasting three months, which would bring the total duration of the four Mortgage Payment Breaks up to a maximum of 12 months.

  You should contact your local authority during your first, or second or third Mortgage Payment Break if you wish to apply for a second, third or fourth Mortgage Payment Break.

• How do I extend my Mortgage Payment Break?

  You can avail of four Mortgage Payment Breaks each of three months duration. The total combined duration of the four Mortgage Payment Breaks is up to a maximum of 12 months.

   

  If your financial circumstances haven’t improved, after the first Mortgage Payment Break you may apply for a second Mortgage Payment Break. If after your second Mortgage Payment Break your financial circumstances haven’t improved, you may apply for a further 3rd Mortgage Payment Break.

   

  If after the third Mortgage Payment Break your financial circumstances haven’t improved the local authority will discuss alternative payment arrangements with you which may include a fourth Mortgage Payment Break. This will bring the total duration of the four Mortgage Payment Breaks up to a maximum of 12 months.

   

  If your second, third or fourth Mortgage Payment Break is approved, your local authority will send you a revised Notification of Approval which will include the revised/higher amount of your repayments after the second/third/fourth Mortgage Payment Breaks. You will be required to sign and return an updated Declaration and Acceptance Form within 15 working days.

• Is there any difference between the first, second, third and fourth Mortgage Payment Breaks?

  The main difference between these four Mortgage Payment Breaks is that your monthly repayments will be higher after the second Mortgage Payment Break than after the first month break. Similarly, your monthly repayments will be higher after the third Mortgage Payment Break than after a second Mortgage Payment Break. Your monthly repayments, will be higher after the fourth Mortgage Payment Break than after the third Mortgage Payment Break.

   

  In addition, during the third and prior to the fourth Mortgage Payment Breaks your local authority will contact you to discuss and assess your financial situation in order to determine whether your income is sufficient to meet your mortgage repayments or if alternative payment options may be more appropriate.

   

  If you were on a Mortgage Payment Break prior to 26 June 2020, you may have also taken a break from paying your MPI, which had to be repaid prior to 18 December 2020. If you apply for a second, third or fourth Mortgage Payment Break you must resume paying your MPI through the second, third and fourth Mortgage Payment Breaks.

• In the future, can I revert to my original monthly repayment amount?

  No. When you take a Mortgage Payment Break a new monthly repayment is calculated and you cannot revert to the repayment amount you had before.

• Can there be gaps between Mortgage Payment Breaks?

  Yes. Having regard to the possibility of ongoing COVID-19 restrictions and/or further economic difficulties, if you have completed your first, second or third Mortgage Payment Break you may access a second/third/fourth Mortgage Payment Break if you are in need of one.

   

  These Mortgage Payment Breaks do not need to be back to back, i.e. you may apply in May 2020 and then again in January 2021. All Mortgage Payment Breaks must be completed by 31 March 2022.

• How long can a Mortgage Payment Break last?

  Each Mortgage Payment Break is of three months duration. You may apply for a maximum of four Mortgage Payment Breaks. The total duration of Mortgage Payment Breaks available is 12 months. However, you cannot apply for more than three months at a time. All Mortgage Payment Breaks must be completed by 31 March 2022.

   

  An exception can be made by a local authority if a borrower wants to apply for a Mortgage Payment Break after 31 December 2021, and needs to have completed that payment break by 31 March 2022. In such circumstances, a local authority may provide a borrower with a Mortgage Payment Break of less than three months.

   

  You must apply for your first Mortgage Payment Break on or before 31 March 2021. If you already have your first Mortgage Payment Break in place by this date, you may apply for up to three additional Mortgage Payment Breaks, each of three months duration after this date, if circumstances warrant. All Mortgage Payment Breaks must be completed by 31 March 2022.

• Do all borrowers on the loan have to sign the Mortgage Payment Break documentation?

  Yes, all borrowers named on the loan must sign the relevant documentation, namely, the Declaration and Acceptance Form agreeing to the revised terms of the mortgage.

• What happens after 31 March 2021?

  You must have applied for your first Mortgage Payment Break before or on 31 March 2021. Applications for a first Mortgage Payment Break after this date will not be eligible.

   

  After 31 March 2021, you can apply for a second / third / fourth Mortgage Payment Break, if circumstances warrant it.

• What happens if I don’t make full repayments after the Mortgage Payment Breaks?

  It is important that you recommence your full repayments after your approved Mortgage Payment Break(s).

   

  If you do not recommence your full monthly repayments (as outlined in the Notification of Approval letter(s)) after your approved first, second, third or fourth Mortgage Payment Break your loan could be classified as in ‘arrears’ which means that your income and expenditure will need to be assessed by your local authority to determine how much you can pay towards your loan and for how long an alternative repayment arrangement should be in place.

  Your local authority will work with you on a range of solutions that will help you get back on track if this is the case. Your credit record can be impacted – local authorities are required by law to report all outstanding loans to the Central Credit Register (CCR). Some local authorities also report outstanding loans to the Irish Credit Bureau (ICB). A poor record on either register may impact your ability to get approval for credit in the future.

• What happens to my monthly repayments during a Mortgage Payment Break?

  If you currently pay your mortgage repayment by Direct Debit your local authority will stop requesting the mortgage element of the payment from your bank for the duration of the Mortgage Payment Break. Equivalent arrangements will apply where payment is not made by Direct Debit. For the majority of borrowers, the monthly loan repayment also includes an amount for Mortgage Protection Insurance; if you wish this element of your monthly payment to stop you must request it specifically on the application form. You must maintain your Mortgage Protection Insurance - please see information below in section

• What happens if I am unable to recommence my full monthly repayments after the Third Mortgage Payment Break?

  Prior to a fourth Mortgage Payment Break your local authority will contact you to discuss and assess your financial circumstances. If your financial situation has not improved, rather than applying for a fourth Mortgage Payment Break, it may be more appropriate to implement a longer term arrangement through the Mortgage Arrears Resolution Process (MARP). Your local authority will discuss alternative payment options with you.

   

  As soon as you realise that your financial circumstances have not improved and you may be unable to recommence paying your full monthly repayments, you should notify your local authority immediately who will discuss alternative payment arrangements with you under the Mortgage Arrears Resolution Process (MARP).

• If I am on my third / fourth Mortgage Payment Break, when will my local authority engage with me?

  Your local authority will contact you during your third and fourth Mortgage Payment Breaks.

• What happens when my local authority contacts me during the third and fourth Mortgage Payment Break?

  Some borrowers may be unable to return to repaying their mortgage in full at the end of their Mortgage Payment Break(s). Therefore, your local authority will engage with you during your third and fourth Mortgage Payment Breaks in order to support borrower awareness and to mitigate potential delays relating to the repayment of mortgages.

   

  The purpose of this contact by your local authority is to determine when the Mortgage Payment Breaks end whether it is likely that you will still be experiencing longer term financial difficulties and could face difficulties meeting your mortgage repayments.

   

  Your local authority will advise you of supports available and potential options for when your Mortgage Payment Break is completed if you are not in a position to meet your mortgage repayments, such as the Mortgage Arrears Resolution Process (MARP).

• What is the Mortgage Arrears Resolution Process (MARP)?

  The Mortgage Arrears Resolution Process (MARP) is for borrowers who are experiencing financial distress and are having difficulties in meeting their mortgage repayments. Further information on this process will be discussed with you by your local authority. A guide on MARP can be accessed through your local authority.

• Statutory Warnings and other Information

  Warning: If you do not meet the repayments on your home loan, your account will go into arrears. This may affect your credit rating, which may limit your ability to access credit in the future.

  Warning: If you do not keep up your home loan repayments you may lose your home.

  Warning: You may have to pay charges if you pay off a fixed rate home loan early.