Mortgage Payment Break for local authority borrowers

Operation of Mortgage Payment Break for local authority borrowers affected by Covid-19 emergency

It has been decided to offer local authority borrowers who consider themselves to be in need of the financial support, related to the COVID-19 situation, the option of a mortgage payment break for up to three months.

A mortgage payment break means that the borrower will make no mortgage payments for up to three months. Additional interest will NOT accrue to the borrowers account during the period of the payment break ensuring that no increased cost will arise. The monthly repayment following the break will be increased to facilitate the repayment of the loan over the remainder of the existing term of the loan. This facility applies to all local authority home loan products.

At the end of the mortgage payment break repayments will resume at a marginally higher level (exclusive of MPI) for the borrower so that the original home loan will be repaid in full within its original term (original amount calculated over the remaining term minus length of the payment break).