Covid mortgage payment breaks set to expire this week

The Government will not be extending the mortgage payment breaks brought in as a result of Covid-19 beyond the end of this month, with banks now set to deal with struggling borrowers on a "case-by-case" basis instead.

Yesterday the Tánaiste, Leo Varadkar, Finance Minister Paschal Donohoe, and Minister for Public Expenditure and Reform, Michael McGrath, held a virtual meeting with the CEOs of the country’s retail banks and the Banking Payments Federation.

The mortgage breaks introduced in March, initially for a three-month period, were extended to six months but are now set to expire from this Thursday, October 1.

While not extending the mortgage breaks, the Government said it emphasised to the banks "the importance of protecting borrowers and offering solutions on a case-by-case basis to customers who are currently on COVID-19 payment breaks."

The Tanaiste, Mr Varadkar, said: "The banks must continue to offer payment breaks to individuals and business that still need them.

"Following on from (yesterday), the banks agreed that this would be done on a case by case basis with other options also being made available; reduced payments and interest-only, for example.

"Anyone who is struggling should contact their bank and we expect that arrangements will be made based on each individual’s circumstances. Banks must be understanding of people’s needs at this really difficult time and cognisant of the extraordinary year 2020 has been.

"There is no cliff-edge coming on September 30. This is merely the last day on which people and firms can apply for a Covid-related payment break if they don’t have one already."

CEOs of AIB, Bank of Ireland, Ulster Bank, KBC, PTSB and the BPFI took part in yesterday's online meeting with the Government Ministers.