Home Loan Mortgage Payment Break

COVID-19 – Additional Mortgage Payment Break for Local Authority borrowers


Laois County Council Loan  borrowers,  who consider themselves to be in need of the financial support, related to the continuing COVID-19 situation, can avail of the option of a further additional mortgage payment break,  for three months.

A Mortgage Payment break means that,  the borrower will make no mortgage payments, for 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 be increased, to facilitate the repayment of the loan, over the remainder of the existing term of the Loan.

The additional mortgage payment break has been developed based on the same principles as the initial mortgage payment break, namely to:

  1. ensure that it can be accessed easily by local authority borrowers while using technology to its full advantage to comply with HSE guidelines on social distancing;
  2. ensure consistent treatment for all local authority borrowers;

For those local authority borrowers who have already availed of a mortgage payment break:

At the end of the initial Mortgage Payment break,  our Loan borrowers who have already availed of a mortgage payment break,  will have two options to either:

  1. Return to repaying their mortgage; or
  2. Extend their COVID-19 payment break to a maximum of 6 months in total.

For those borrowers who may have exercised caution for their first mortgage payment break,  by not availing of the full three month payment break, they may now avail of more than three months for their second payment break to bring their total break to six months, if appropriate. This is to ensure consistent treatment for all borrowers.

For those borrowers who are applying for their first mortgage break,  with effect from the 26th June, 2020, they may now only apply for a break of three months;

A local authority borrower applying for their first mortgage payment break may only apply for a maximum of two mortgage payment breaks of three months each; and may not apply for a single break of up to six months.

Mortgage payment breaks must be back-to-back, i.e. the second break must directly follow the first, after the closing date of 30 September 2020.

Applicants must return the completed Additional Mortgage Payment Break Application Form to be processed  and once Borrowers their Additional Mortgage Payment Break- Notification of Approval, must return  a signed,  Declaration and Acceptance Form,  with the Notification letter,  to commence the Extension to the existing Mortgage Payment Break.

Further queries that you may have, in relation to the above, can be addressed,  by  emailing our Housing Loans Team,  on  housingloans@laoiscoco.ie or  by contacting 057-8664062/  057-8664056/  057-8664229/057-8664129.