What is a payment break?
A payment break gives you a break from repaying your mortgage or personal loan. Under a payment break agreed with your lender, the loan repayment is postponed for an agreed period of time. Any repayments not made during this period will continue to be charged with interest and must be paid back in the future. What this means for your repayments is explained later in these FAQs.
I have been impacted by Covid-19 and I will not be able to pay my Mortgage and/or Personal Loan.
We are committed to helping our customers who are impacted by COVID-19 and have solutions in place to help. Depending on your circumstances, we can offer you a moratorium (payment break) or interest-only payment arrangement.
Please contact us on 1850 93 02 35 and we will discuss your options with you.
I might be affected by Covid-19 and may not be able to pay my scheduled repayment
We would encourage you to continue to maintain your repayments to your account if you are able to do so. But if your circumstances change, we will be able to help you.
Please contact us on 1890 93 02 35 and we will discuss your options with you.
If I take a payment break, how will this affect my repayments?
Your monthly repayments will be reduced during the arrangement. After the arrangement ends, there will be an increase in your monthly repayments due. The reason for this is that, depending on the type of arrangement you avail of, there will be an amount of capital and/or accrued interest that you will have deferred the repayment of during the arrangement. These deferred repayments will need to be repaid over the remaining term of your loan, and so your monthly repayments will be adjusted at the end of the arrangement to take this into account. Before your arrangement ends, we will contact you to let you know what the increased monthly repayment will be.
Depending on your circumstances, we may be able to extend the term of the loan by the number of months of which you availed of the payment break. This will reduce any increase in your revised scheduled repayment but it will mean that your loan term will be longer. There will be an additional cost to you if you avail of this option, which is referred to as the “Additional Cost of Credit”. This is explained in detail in the answer to the question “Will this involve any additional cost for me”? We can discuss the option of a term extension with you as you come to the end of your arrangement.
Will this involve any additional cost for me?
Yes. Where you take a payment break (moratorium), you will be deferring the payment of both interest and capital. Where you avail of an interest only arrangement, you will be deferring the payment of capital only.
Interest that accrues during the payment break will be capitalized and repaid over the remaining term of the loan. As such, it will attract interest in the same way as the loan advance until repaid in full. In addition, the capital repayments that are deferred under a payment break or interest only arrangement will mean you are repaying the loan more slowly than originally scheduled. Interest will still be charged on those deferred capital repayments. Together, these represent an additional cost of credit.
Where you avail of a payment break (deferred interest and capital) or an interest only arrangement (deferred capital only), we will confirm the total additional cost of credit in writing to you.
I’m not sure how much I can commit to paying each month – can I vary the amount?
Yes. You can choose interest only or a full moratorium, but you can then make a manual payment each month on top of this depending on what you decide is affordable to you. You can stop this extra payment at any time if you need to do so.
I’m on an agreed long term reduced repayment arrangement - can I still have these arrangements?
These options can be considered, taking into account your current arrangement with the bank. Please contact us to discuss the details of your own individual case on 1890 93 02 35
My Direct Debit has already left my account. Can I get it back?
If you send us evidence of the money which has left your account (by email to firstname.lastname@example.org
) – for example, a screenshot from your internet banking – then we can arrange for a refund to you while this is being processed. If you are unable to provide us with this, then you will have to follow the normal Direct Debit Refund process. The form can be downloaded from our website
and posted back into us within 8 weeks of the date of the Direct Debit.
What documentation do I need to provide the Bank with to prove my situation?
At the moment, if you are impacted by Covid-19 no supporting documentation is required in order to avail of an arrangement.
If you avail of an arrangement, we will contact you again prior to the end of the payment break and may ask you to complete and return a Standard Financial Statement (mortgage) or Income and Expenditure form (personal loan) to help us better understand your circumstances.
What impact will this have on my Irish Credit Bureau (ICB)/Central Credit Register (CCR) Credit Rating?
For the duration of this payment break, your account record with the ICB and /or the CCR will not be adversely affected, as announced by the Minister for Finance and the Banking and Payments Federation of Ireland (“BPFI”).
What if my financial concerns are not as a result of Covid-19?
We have a range of different options available.
For Mortgage Customers:
You will need to complete a Standard Financial Statement and send it to us along with all your supporting documentation by post if possible (or by scanning and emailing it to email@example.com
For Personal Loan Customers:
You will need to complete an Income and Expenditure Form and send it to us along with all your supporting documentation by post if possible (or by scanning and emailing it to firstname.lastname@example.org
If you have both a Mortgage and Personal Loan with us, you will need to provide us with only a Standard Financial Statement and supporting documentation.
The Standard Financial Statement form can be found in our Mortgage Support section
The Income and Expenditure form can be downloaded here: Income and Expenditure form (pdf, 430 KB)
Your circumstances will be assessed and a member of our Arrears Support Unit will be back in contact with you to confirm the information and discuss the options available to you.
I have not found the answers I need on this page. What should I do?
If you still have unanswered questions about the options available to you, please contact us on 1890 930 235
and a member of our team will be happy to help you.