Extend Mortgage Payments

You can apply for a Mortgage Payment Break extension for another three months (total six months) if:

-  Your ability to pay your mortgage is still affected by Coronavirus (COVID-19)

-  You have consent from everyone named on the mortgage

-  You have drawn down your mortgage before 16^th March 2020

-  You have received your letter outlining the different options available to you, this will be issued to you prior to your Payment Break expiry date

‘Cost of Credit’ is the total amount of money that you are charged when borrowing from a credit provider. For mortgages, this is the additional amount, over and above the amount borrowed, that you pay, including interest, fees and charges over the life of the mortgage.  There is no fee or charge when you take a Payment Break.

As we suspended your monthly repayments for three months, the balance of your mortgage is higher at the end of your Payment Break than it would have been if you had continued to make your monthly repayments without a payment break.

Therefore, as your mortgage balance will be higher so will the 'Cost of Cedit'.  As interest is charged on your total mortgage balance, the monthly interest cost will be higher after your payment break.

The initial ‘Cost of Credit’ is calculated when you first take out your mortgage and this amount is detailed within your original loan agreement.

However, the Cost of Credit can change over the life of your mortgage any time an adjustment is made to your mortgage.

Adjustments such as moving to a higher or lower interest rate will change the cost of credit over the life of your mortgage.

Taking a payment break, missing a payment or increasing the term of your mortgage can increase your cost of credit while making a higher monthly repayment, paying a lump sum to your mortgage or decreasing the term of your mortgage can decrease your cost of credit.

Here are some illustrative examples which will help you understand how much cost of credit can increase after a Payment Break. These examples also illustrate how your decision on whether to make up the monthly repayments suspended during the Payment Break a little at a time over the remaining term or whether to make up the suspended repayments at the end of your mortgage by paying 3 (or 6 if you have a Payment Break extension) extra monthly repayments.

Example 1: Outstanding mortgage balance is €150,000. At the point of the three month Payment Break starting, there are 20 years remaining and a Standard Variable Rate of 4.3% is in place.

Please note it's best to view the table below using a mobile device in landsacpe display, or a desktop computer or tablet.

You can see the difference that the three month Payment Break makes compared to if you hadn’t needed the Payment Break.

You can also see from the table above that the increase in the ‘cost of credit’ is more if you wait until the end of your mortgage to make up the three suspended payments.

Example 2: Outstanding mortgage balance is €60,000. At the point of the three month Payment Break starting, there are 5 years remaining and a Loyalty Discounted Variable Interest Rate of 3.1% is in place.

Please note it's best to view the table below using a mobile device in landsacpe display, or a desktop computer or tablet.  

This example shows that the increase to the monthly repayment is relatively greater than the increase in the first example if you choose Option 1(A) when there is a short term remaining on your mortgage in this second example. However, the increase in the ‘cost of credit’ is relatively lower in this second example because you are paying interest for a shorter period as the remaining term is less.