Mortgage interruption plan will not be extended, government confirms

THE GOVERNMENT HAS confirmed that the mortgage payment interruption will not be extended, but that banks must continue to offer payment interruptions to people and businesses that still need them.

The payment halt, which was announced in March, will end on September 30, prompting the business groups and TD to request a new extension.

Tánaiste Leo Varadkar, Finance Minister Paschal Donohoe and Public Expenditure and Reform Minister Michael McGrath met today with the CEOs of AIB, Bank of Ireland, Ulster Bank, KBC, PTSB.

Following the meeting, the Tánaiste said the banks agreed that solutions for those unable to resume full payments would be applied on a case-by-case basis.

Varadkar also confirmed that customers who have difficulties at the end of the payment interruption will be supported with a range of options so that a suitable arrangement can be agreed.

An update after meeting with the banks today with@Paschald Y@mmcgrathtd pic.twitter.com/XyGXvR5A0S

– Leo Varadkar (@LeoVaradkar) September 28, 2020

He said the pandemic meant that people were unable to repay home and business loans through no fault of their own.

“For this reason, banks must continue to offer payment breaks to people and companies that still need them.

“As of today, the banks agreed that this would be done on a case-by-case basis and that other options would also be offered; reduced payments and only interest, for example ”, said the Tánaiste.

He said anyone experiencing difficulties should contact their bank and that he hopes arrangements will be made based on each individual’s circumstances.

The Tánaiste said that September 30 is not a “cliff edge”, but is the last date by which people who do not yet have a payment interruption can request it.

“Banks need to understand the needs of people in this really difficult time and be aware of what an extraordinary year 2020 has been,” he said.