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Minister O’Brien extends Local Authority mortgage payment break

Written by David Lynch | 27 January 2021

Deadline for applying for Local Authority mortgage payment break extended to 31st March 2021

The Minister for Housing, Local Government and Heritage, Darragh O’Brien TD, confirmed today (27th January 2021) that the mortgage payment break already in place for local authority home loan borrowers will be extended for those continuing to face difficulties due to the COVID-19 emergency.

Local authority home loan borrowers could already avail of three payment breaks totalling up to nine months and borrowers who take up a fourth payment break will be contacted by their local authority during the payment break to assess their financial situation and discuss options if necessary.

Minister O’Brien also confirmed that he is also extending the deadline for applying for a Local Authority mortgage payment break until 31st March 2021 to provide for borrowers who may yet suffer setbacks in the coming months.

Commenting he said, “Given the continuing economic turbulence associated with COVID-19, some local authority home loan borrowers continue to face difficulties in paying their mortgage or have very real fears that they will face repayment problems in the future.

“To help people in this situation, I am extending the mortgage payment break period by another three months, allowing people a total of twelve months to get back on their feet. I am also extending the deadline for applying for a mortgage payment break until 31st March 2021 to provide for borrowers who may yet suffer setbacks in the coming months.

“I would strongly encourage any local authority home loan borrower who is seeking a further payment break to engage with their local authority as soon as possible so that their financial situation can be assessed and so they can discuss alternative payment options if necessary,” he concluded.

No additional costs to the original home loan balance arise for the borrower who avails of these measures, as borrowers are not charged interest for the period of the mortgage payment breaks.

Local Authority home loan borrowers facing difficulties due to COVID-19 are urged to contact their local authority as soon as possible to access the application. Information will be available on each local authority’s website.