Housing Covid-19 Information

Covid 19 – Mortgage Payment Break for Local Authority Borrowers

The Minister for Housing, Planning and Local Government, Mr Eoghan Murphy TD, confirmed on 14th April 2020 that forbearance arrangements have been put in place for local authority mortgage products.

“Measures to support local authority home loan borrowers have now been agreed. These measures will ensure that a mortgage payment break of up to three months will be made available to local authority borrowers who are in need of it.”

On 26th June 2020 further additional arrangements were announced to support local authority borrowers who experienced financial distress arising out of the continuing COVID-19 emergency.   These included:

  • A further Mortgage Payment Break for local authority borrowers from 3 to 6 months.
  • Introduction of a 15 working day decision period to accept mortgage payment break.

On the 29th of September 2020 Minister for Housing Planning and Local Government Mr Darragh O’Brien T.D. announced further arrangements that were put in place to support local authority borrowers who experienced financial distress arising out of the continuing COVID-19 emergency.   These included:

  • Introduction of a third Mortgage Payment Break for local authority borrowers from 6 to 9 months.

On the 27th of January 2021 Minister for Housing Planning and Local Government Mr Darragh O’Brien T.D. announced further arrangements that were put in place to support local authority borrowers who experienced financial distress arising out of the continuing COVID-19 emergency.

These included:

  • Introduction of the option of a fourth Mortgage Payment Break for local authority borrowers, if circumstances warrant it, bringing the total of the four Mortgage Payment Breaks up to a maximum of twelve months;
  • An extension of the closing date for first time applicants applying for a first Mortgage Payment Break to 31 March 2021;

The approach being rolled out will ensure that no additional costs to the original home loan balance will arise for the borrower who avails of these measures, as borrowers are not charged interest for the period of the breaks.

These breaks are available to those who have already faced mortgage difficulties due to the COVID-19 emergency and those who may encounter difficulties in the near future.

The Closing Date for applying for your first Mortgage Payment Break is 31st March 2021.

Any borrower currently on a Mortgage Payment Break, or who has previously availed of a   Mortgage Payment Break can apply for a further 3-month Mortgage Payment Break up to a maximum combined period of 12 months.

Mortgage Payment Breaks are not required to be taken back to back.  Borrowers who previously completed a Mortgage Payment Break can apply for a second, third or fourth Mortgage Payment Break if circumstances warrant it, even if there was a gap between Mortgage Payment Breaks, however all Mortgage Payment Breaks must be completed in full by 31 March 2022.

Any borrower facing difficulties due to COVID-19 are urged to contact Kerry County Council, Housing Loans Department as soon as possible by email to loans@kerrycoco.ie or by ringing 066- 7183910

Please note the following documents attached:

Initial Mortgage Payment Break – Application Form

Additional Mortgage Payment Break – Application Form

Frequently Asked Questions for Mortgage Payment Break

4th Mortgage Payment Break Application Form

Frequently Asked Questions Loan Mortgage Payment Break

 

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