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Home loan Mortgage Payment Break

Mortgage Payment Break of up to three months on your local authority home loan under the COVID-19 emergency measures

To apply you must have experienced a reduction (or anticipate suffering a reduction) in your income arising from the COVID-19 emergency 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 entered into arrears arising out of COVID-19 and not yet entered into a repayment plan.If you have entered into arrears, due to the Covid-19 emergency, 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)

Mortgage Payment Break details

  • Your home loan account is paused for the Mortgage Payment Break period.
  • 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 after the Covid-19 mortgage payment break).
  • 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.

Further details on the Mortgage Payment Break, including the financial impact for borrowers, please see the Mortgage Payment Break - Frequently asked questions below.

For those borrowers who pay their Mortgage Protection Insurance (MPI) as part of their monthly payment to their local authority, you will be required to repay the MPI premia to Clare County Council monthly throughout the Mortgage Payment Break period. You will be informed of monthly MPI amount in the Notification of Approval Form which will issue to you.

Page last reviewed: 15/04/20

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