Local Authority home loan borrowers may now apply for a Mortgage Payment Break of up to three months on their home loan if they have experienced a reduction (or anticipate suffering a reduction) in their income, arising from the Covid-19 emergency, and they are unable to make repayments on their home loan.
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 increase 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.