Bank of Ireland COVID-19 mortgage supports

Frequently Asked Questions

 
  • 1. How do I apply for a mortgage payment break?

    To request a payment break, or to ask to extend your payment break from 3 months to 6 months, complete the application form online at boi.com/paymentbreak, text “mortgage” to 50365 and we’ll send you a link, or call our Customer Relationship Team on 01 611 3333 (lines open 9am to 5:30pm, Monday to Friday).

    Closing date for applying for your first COVID-19 payment break is 30 June 2020.

  • 2. Can I apply to extend the term (duration) of my mortgage?

    Yes. If you have had a 3 month payment break applied to your mortgage loan and wish to apply to extend your mortgage term by 3 months you can do so by completing the Call Back form on our website at boi.com/paymentbreak. One of our agents will go through the detail with you over the phone and give you all the information you need.

    This option may be suitable for you if you normally pay full capital and interest repayments and you want to keep your regular repayments closer to the level they were before your COVID-19 payment break.

    IMPORTANT NOTES ABOUT EXTENDING YOUR MORTGAGE TERM:

    If you extend the term of your mortgage loan, while your repayments will be closer to the level they were before your COVID-19 payment break, it’s important to understand the implications of this – our agents will be able to explain this to you over the phone – i.e.

    • You will end up paying more in interest over the life of your loan;
    • The new end date of your mortgage loan may not align with your planned retirement date;

    • There could be implications for your life cover and you may need to review it with your life policy provider.

  • 3. Am I eligible for a 3 month payment break or an extended 6 month payment break on my mortgage?

    Payment breaks are available to holders of both Private Dwelling Home and Buy-to-Let mortgages who meet the following criteria. However, if you don’t meet these criteria, we may still be able to help you – complete the online application form and one of our agents will call you to discuss your application.

    Payment Break criteria

    • This is a precautionary1 request (your income hasn’t reduced but you want a safety net) OR it reflects a temporary reduction in your income which has occurred as a result of the current health crisis;
    • You were not concerned about your ability to meet your repayments prior to COVID-19;
    • You are not in a forbearance arrangement with Bank of Ireland or, if you are, you have met all the terms and conditions for a minimum of 12 months;
    • You were not in arrears prior to March 2020 on any mortgage account or other Bank of Ireland loan.
    • 1. If you are considering a ‘precautionary’ payment break due to the potential impact of COVID-19, use our calculator at boi.com/paymentbreak to get an indication of what this will mean for your mortgage. Your balance will be higher at the end of the payment break, your subsequent repayments will increase and you will pay more interest, so you should only apply for a payment break if you are satisfied you need one.

  • 4. Will taking a payment break mean I end up paying more interest?

    Yes. You don’t make capital or interest repayments during a payment break but interest continues to be applied to the loan during it. This means the amount you owe will be higher after the payment break. And because the maturity date doesn’t change, your repayments after the payment break will be higher in order to repay the mortgage by the end of its agreed term (the duration of the loan).

    Under question 5, you can see some worked examples showing the implications of a payment break. You can also use the payment break calculator at boi.com/paymentbreak to get an indication of what this will mean for your mortgage loan.

    If you feel confident you can afford to make some partial or full mortgage repayments during the payment break period, you should strongly consider doing this. Paying down your loan as soon as you can will reduce the amount of interest you will pay over the life of your mortgage, while options such as extending your payment break or extending the term of your loan will cost you more in interest. Call us on 01 611 3333 to discuss this.

  • 5. What impact will a payment break have on my mortgage balance?

    Here are some worked examples based on a mortgage with €100,000 owing, on a rate of 3.0%, and remaining terms between 10 and 30 years.

    Term remaining before maturity 10 Years 15 Years 20 Years 25 Years 30 Years
    Amount owing on the mortgage loan €100,000 €100,000 €100,000 €100,000 €100,000
    Interest rate 3% 3% 3% 3% 3%
    Current monthly repayments at this rate €965 €690 €554 €474 €421
    Total amount to repay with no payment break €115,832 €124,240 €133,014 €142,147 €151,632
    Monthly repayments after a 3 month payment break €994 €705 €564 €481 €427
    Increase in monthly repayments after a 3 month break €29 €15 €9 €7 €5
    Total amount to repay with a 3 month payment break €116,286 €124,739 €133,561 €142,744 €152,284
    Additional interest cost of a 3 month payment break €455 €499 €547 €598 €651
    Monthly repayments after a 6 month payment break €1,024 €720 €573 €488 €432
    Increase in monthly repayments after a 6 month break €59 €30 €19 €14 €11
    Total amount to repay with a 6 month payment break €116,743 €125,240 €134,109 €143,344 €152,937
    Additional interest cost of a 6 month payment break €911 €1,000 €1,096 €1,197 €1,304

    These are illustrative examples based on a sample rate of 3%. The calculations assume the interest rate will not change for the rest of the mortgage term. (At the end of a fixed rate period customers can choose from rate options available then or roll to the variable rate that will apply at that time. Variable rates can change during the life of a mortgage.) Monthly repayments are based on full capital and interest payments.

    A payment break means there will be no direct debit payments from your current account to your mortgage for the period of the break, while we will continue to apply interest to your mortgage during the payment break. The mortgage balance will have increased over the payment break, meaning your monthly instalment at the end of the break will be higher.

    In the 20-year example above:

    3 month payment break

    • After a 3 month payment break, the monthly instalment required to pay off the mortgage over the remaining 20 years is €564 which is €9 a month higher than without the payment break (the slight difference is due to rounding to the nearest euro).
    • When the entire 20-year mortgage term is considered, after a 3 month payment break the total amount repayable, originally €133,014, will increase by €547 to €133,561.

    6 month payment break

    • After a 6 month payment break, the monthly instalment required to pay off the mortgage over the remaining 20 years would be €573 which is €19 a month higher than without the payment break.
    • When the entire 20-year mortgage term is considered, after a 6 month payment break the total amount repayable, originally €133,014, will increase by €1,096 to €134,109.
  • 6. What are the key points to consider when thinking about a mortgage payment break?
    • The balance will be higher at the end of the payment break period than it was at the start of the payment break.
    • Your subsequent repayments will increase and you will pay more interest so you should only apply for a payment break when you are satisfied you need it.
    • The term (duration) of your mortgage will not lengthen as a result; it will have the same maturity date it had before the payment break.
    • If you feel confident you can afford to make some partial or full mortgage repayments during the payment break period, you should strongly consider doing this. Paying down your loan as soon as you can will reduce the amount of interest you will pay over the life of your mortgage. Call us on 01 6113333 to discuss this.
    • If you have any doubts about taking a payment break, we strongly recommend you get independent legal or financial advice.
  • 7. Will my mortgage rate change as a result of applying for a payment break?

    No, your mortgage rate will not change as a result of taking a payment break.

  • 8. How long will it take to put the payment break in place after I apply?

    Generally, it takes about 10 working days to set up a payment break. This is because the SEPA direct debit system is set up to call a payment some time in advance of the actual payment date.

  • 9. What if I need my payment break to start sooner than in 10 working days?

    We may be able to help you with an emergency request by reversing and/or refunding your next direct debit payment. Call us on 01 611 3333 to discuss this.

  • 10. Will I be told when the payment break has been applied to my mortgage?

    Yes. We will send you an SMS to confirm when your payment break request has been processed.

    Once the payment break has been implemented, we will send you a confirmation letter with full details of their payment break including implications for your mortgage contract.

  • 11. Will a COVID-19 payment break affect my record on the Central Credit Register?

    As confirmed by the Central Bank of Ireland, there will be no impact to the Central Credit Register credit records of customers who avail of a payment break as a result of being financially impacted by COVID-19.

  • 12. My mortgage account is in joint names, how do I apply for a payment break?

    Simply provide the details requested for each mortgage accountholder in the payment break application – over the phone and online.

  • 13. If I have more than one mortgage, do I have to apply for each payment break separately?

    Yes. You need to apply separately for a payment break for each account.

  • 14. Can I apply for a payment break if I am on a fixed rate?

    Yes. Payment breaks are available regardless of the type of mortgage you have or the interest rate. The repayments will be higher at the end of the payment break to repay the loan by its maturity date, but the interest rate will not be impacted.

  • 15. Can I apply for a payment break if I am on a tracker rate?

    Yes. Payment breaks are available regardless of the type of mortgage you have or the interest rate. The repayments will be higher at the end of the payment break period to repay the loan by its maturity date, but the interest rate will not be impacted.

  • 16. What happens to my mortgage during a payment break?

    During the payment break, you don’t make any repayments (interest or capital) and we stop taking direct debits from your current account.

    But while you don’t have to make payments during the payment break, it is important to note that interest will still be applied to your mortgage. As a result, your mortgage balance will increase by the amount of the interest over the payment break.

    If you feel confident you can afford to make some partial or full mortgage repayments during the payment break period, you should strongly consider doing this. Paying down your loan as soon as you can will reduce the amount of interest you will pay over the life of your mortgage, while options such as extending your payment break or extending the term of your loan will cost you more in interest. Call us on 01 6113333 to discuss this.

  • 17. What happens at the end of a 3 month mortgage payment break?

    At the end of a 3 month payment break, your mortgage direct debits will automatically start again. (unless you and we have agreed a different arrangement). Your repayments will be higher to accommodate interest charged during the payment break period and to repay your mortgage over its agreed term.

    Before the 3 month payment break ends, we will write to you giving you the options available to you then. If you are able to return to repaying your mortgage, you may either repay your loan within its remaining term or extend the term of the loan. In the letter we will outline the options available to you and how these will impact your repayments and your overall cost of credit, and tell you the next steps.



Apply for a COVID-19 Mortgage payment break
WARNING: YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS ON A MORTGAGE OR ANY OTHER LOAN SECURED ON IT.
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Bank of Ireland trading as The Mortgage Store – powered by Bank of Ireland is regulated by the Central Bank of Ireland.
Bank of Ireland is regulated by the Central Bank of Ireland.

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