What are my options after a second COVID-19 payment break?

Where you are able, returning to your previous payment arrangement, as soon as can you afford to do so, is in your best interests as it will reduce your interest cost over the remaining term of your mortgage.

 Where you are not yet ready and need some longer term support, we can help. It is important that you understand how those options will impact your mortgage and we have outlined that information below. If you need any more support to help you select the option which works for you, please contact us.

 

 

Option 1: Return to full payments

I want to return to full mortgage payments

If you want to go back to full mortgage payments then no action is needed from you. We will return your mortgage to your previous arrangement at the end of your payment break (moratorium/interest only). We will write to you before this happens with details of your monthly mortgage repayment amount and the date when your repayment will change from.  

You don’t need to do anything if you pay by direct debit as we will make the changes to your repayments. If you cancelled your direct debit in the last six months you will need to reinstate it and make sure there is enough money in the account. This is to avoid accidentally missing the first full monthly payment. If you don't pay by direct debit, please just make sure that your mortgage payment arrives on time.

Option 2: Return to full payments but extend the term of your mortgage

I want to return to mortgage payments but extend the term of my mortgage

If you want to return to your previous payment structure and apply for a term extension on your mortgage, you may be entitled to do so. This would lower your new monthly payments when your payment break (moratorium/interest only) ends, but it will result in you paying more interest on the longer term of the extended mortgage.

How do I apply?
To apply for a term extension on your mortgage, you can:

Apply Online

You can also call our team on 1850 330 044

For Payment Breaks expiring in December 2020, in order to avail of a Term Extension, please ensure that you submit your request by 17:00 on the 21st December and be available for a call back within 24 hours of submitting your request.

If someone else has taken out the mortgage with you, everyone named on the mortgage will need to be available to speak to us when we call you.

If you want to ensure that there is no increase in your repayments post the payment break compared to your pre payment break repayment amount, a Term Extension for longer than 6 months is also available to you. In order to avail of a term extension for longer than 6 months, please contact us on 1850 330 044.

How much does it cost?
If you choose to extend the term of your mortgage, your mortgage will cost you more in the long term.

 We have included an illustrative example below of how much your mortgage payments can increase due to a term extension. This example is an illustration, the exact increase in cost will vary. However, we can give you a more detailed indication of how much your new payments and cost of credit will be over the phone on (01)-771 4499.

Six month moratorium and six month term extension

This example uses an interest rate of 3.70% and assumes that your loan is greater than 80% of the value of the property.

Time left on mortgage 15 
20 
25 
30
Balance left on mortgage   €100,000.00
 €100,000.00  €100,000.00  €100,000.00
Interest Rate
 3.70%
 3.70%
 3.70%
 3.70%
Monthly payments
 €724.74
 €590.29
 €511.41
 €460.28
Payments during the six month payment break
€0.00 €0.00 €0.00 €0.00
Capital and interest payments after a six month payment break  €757.32  €611.72  €527.42  €473.21
Capital and interest payments after a six month payment break and a six month extension to the term of the mortgage
 €738.26
 €601.29
 €520.95
 €468.68
Total Interest paid over the time left on the mortgage €30,453.99 €41,669.48 €53,424.13
€65,701.87
Total Interest paid over the time left on the mortgage if you take a six month payment break
€31,774.36 €43,143.23 €55,062.79
€67,516.97
Total Interest paid over the time left on the mortgage if you take a six month payment break and a six month extension to the term of the mortgage
€32,886.07 €44,310.65 €56,284.44 €68,791.09

 

Six month interest only and six month term extension

This example uses an interest rate of 3.70% and assumes that your loan is greater than 80% of the value of the property.

Time left on mortgage 15 
20 
25 
30
Balance left on mortgage  €100,000.00
 €100,000.00  €100,000.00  €100,000.00
Interest Rate
 3.70%
 3.70%
 3.70%
 3.70%
Monthly payments
 €724.74
 €590.29
 €511.41
 €460.28
Payments during the six months of paying interest only
€308.33 €308.33 €308.33 €308.33
Capital and interest payments after six months of paying interest only  €743.46  €600.53  €517.77  €464.55
Capital and interest payments after six months of paying interest only and a six month extension to the term of the mortgage
€724.74
 €590.29
 €511.41
 €460.28
Total Interest paid over the time left on the mortgage €30,453.99 €41,669.48 €53,424.13
€65,701.87
Total Interest paid over the time left on the mortgage if you pay interest only for six months
€31,212.62 €43,373.43 €54,074.83
€66,301.08
Total interest paid over the time left on the mortgage if you pay interest only for six months and take a six month extension to the term of the mortgage €32,303.99 €43,519.48 €55,274.13 €67,551.87

 

Option 3: Worried about returning to full payments

I want to explore additional support options

We aim to continue to support you through this situation.

If you expect that you will have a longer-term loss of income as a result of COVID-19 and are unable to return to full mortgage payments, the important first step is to call the Credit Support Unit on 1850 330 044. We will assess your circumstances and suggest the next best course of action. Before the call, please visit Worried about Payments for more about our long term options.

If you need a longer-term support option, we may ask you to complete a Standard Financial Statement (SFS). This form gathers information about your finances to help us assess what type of arrangement is best. You can read more about completing the SFS form here.