No extension in mortgage repayment period

The deadline for loan repayments, including mortgages, imposed by the Irish government following the Covid crisis has not been extended.

The ministers held talks with the heads of the country’s leading retail banks to extend the mortgage repayment period, but no favorable decision was reached.

Therefore, the leave period for mortgages and loans that have not been repaid will end by the end of September.

Loans from next month, as usual, must be repaid in installments without any due.

There is also serious concern that families and businesses may not be able to resume payments as the Covid crisis persists.

Sinn Fein and the Labor Party have also called for the payment period to be extended by a few months. But again, banks and other financial institutions were adamant that the repayment period would not be extended for a long time.

At the same time, the government said in a statement that some payment breaks may be offered and other avenues may have to be found.

The virtual meeting with the heads of the five major banks was attended by Deputy Prime Minister Leo Varadkar, Finance Minister Pascal Donna and Public Expenditure and Reforms Minister Michael McGrath.

Varadkar said the banks had agreed to make arrangements for those who could not repay the entire payment in one go.

Meanwhile, people are finding it difficult to repay mortgages and business loans due to the Covid crisis. Therefore, he said, banks should extend the term they require individuals and businesses.

Those who are having difficulty with repayments should contact their banks to make the necessary arrangements.

The meeting was attended by CEOs of AIB, Bank of Ireland, Ulster Bank, KBC, Permanent TSB and the Banking and Payments Federation.

Labor finance spokesman Ged Nash said the finance minister should ensure that banks make the necessary arrangements for those whose incomes stagnated during the crisis period.