Kilkenny County Council and their Carlow County Council have announced details of how to apply for mortgage breaks for loans secured through the local authorities.
Borrowers with home loans secured through their local authority can apply to have loans paused for a period of up to 3 months if a reduction in income or anticipated reduction during the Covid-19 pandemic results in difficulties making monthly repayments.
While interest will not be charged during the break, mortgage protection insurance will continue to be paid.
As outlined by Carlow County Council, at the end of the 1,2,or 3 month period the principal outstanding is recalculated over the remaining term of the loan (i.e. the term of the loan remains unchanged so the monthly repayments will increase marginally after the paused period expires).
Cathaoirleach of Kilkenny County Council, Cllr. Peter ‘Chap’ Cleere said of the break “I welcome this announcement by the Government during this very difficult time when people are losing their jobs. I would urge any borrower facing difficulty to contact their local authority immediately and fill out the necessary forms in order to avail of the mortgage break.”
Simplified forms have been released and must be filled and returned to the respective local authority in order to apply for the mortgage break.
