Circular 9 2020 - Mortgage Payment Break for local authority borrowers was issued by the Department on the 10th of April 2020 to inform of arrangements to be put in place to support local authority borrowers who are experiencing financial distress arising out of COVID-19.
Mortgage Payment Break for LA Borrowers
Mortgage Payment Break for local authority borrowers
It has been decided to offer local authority borrowers who consider themselves to be in need of the financial support, related to the COVID-19 situation, the option of a mortgage payment break for up to three months.
A mortgage payment break means that the borrower will make no mortgage payments for up to three months. Additional interest will NOT accrue to the borrowers account during the period of the payment break ensuring that no increased cost will arise. The monthly repayment following the break will be increased to facilitate the repayment of the loan over the remainder of the existing term of the loan. This facility applies to all local authority home loan products.
At the end of the mortgage payment break repayments will resume at a marginally higher level (exclusive of MPI) for the borrower so that the original home loan will be repaid in full within its original term (original amount calculated over the remaining term minus length of the payment break).
For full details and application form go to Mortgage Payment Break for local authority borrowers