The mortgage moratorium was one of a flurry of crisis management measures when Covid-19 hit. The Government put a range of supports in place when it effectively shut down the country in March. It was billed as a payment holiday, break or suspension. In fact, it is merely a deferral of repayments.
More than 65,000 people have availed of it according to the Banking and Payments Federation Ireland (BPFI). But it has caused confusion among those who have applied for it and been refused it. Here are the most common questions being asked about mortgage matters which will help you decide whether it is something you need or not.
What’s on offer?
A three- or six-month deferral of mortgage payments, depending on the lender, for those whose income has been directly affected by Covid-19. The payments forgone will either be added to your existing capital outstanding, resulting in increased monthly payments when they resume, or added to the end of the loan, extending its term until the payments are completed.