Frequently Asked Questions

Here are some FAQs to help you through uncertain times. These will be updated regularly with the latest information and guidance.

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Mortgages

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    What is a mortgage payment break?

    We know times are tough so we are offering mortgage customers who have been impacted by COVID-19, the option to apply for three month moratorium or three months paying interest only. These are available whether you live in the home yourself or rent the house out. 

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    What’s the difference between a moratorium and interest only?

    Because of the difficulties our customers face, we’re offering the option to apply for a COVID-19 payment break (moratorium/ interest only). A moratorium period means you will not have to make any mortgage repayments for three months.  We will continue to charge you interest during the three months, we will increase each of your mortgage monthly repayments over the remaining term of your loan, so that you can pay your mortgage in full over its original term.

     

    The other type of payment break is where you pay interest only payments for three months. At the end of your interest only period, we will increase each of your mortgage monthly repayments over the remaining term of your loan, so that you can pay your mortgage in full over its original term.

     

    Please note that your Cost of Credit will increase if you avail of either of these options.

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    Due to COVID- 19 I need to take a short term break from paying my mortgage. How can I apply for a payment break?

    If you have less cash flow due to COVID-19 and you need to take a break from paying your mortgage please call us on 1850 654 329 / (01) 665 8082 (Opening hours are Monday – Friday, 9am to 5pm and Saturday, 9am to 1pm) and we’ll do our best to help you. Or click here for our online form.

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    What happens when the payment break ends?

    We will write to you before the end of the payment break to advise you of your new mortgage repayment. At the end of the payment break, we will increase each of your mortgage monthly repayments over the remaining term of your loan, so that you can pay your mortgage in full over the original term. If you are still experiencing financial difficulties due to COVID-19, visit the Haven COVID-19 website. There we will have details of what we can do to help you.

    If you are experiencing longer term cash flow problems and you feel you cannot afford your higher repayments when the payment break ends, please talk to us on 1850 654 329 (Opening hours are 9:00 to 20:00 Monday to Thursday, 9:00 to 18:00 on Friday and 9:00 to 13:00 on Saturdays) and we’ll do our best to help you.

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    Will my mortgage rate change if I take a payment break?

    No your mortgage interest rate will not be changed if you choose to avail of a payment break option.

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    I am on a fixed rate. Does the payment break mean I’ve broken my fixed rate?

    No, the payment break is not considered to be a break in your fixed rate of interest. 

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    I already have a payment break due to COVID-19 and am still experiencing financial difficulties can I apply for another payment break?

    If you are experiencing longer term cash flow problems due to COVID-19 or if your situation has changed and you feel you cannot meet your repayments and need to take another break from paying your mortgage, please call us on 1850 654 329 / (01) 665 8082 (Opening hours are Monday – Friday, 9am to 5pm and Saturday, 9am to 1pm) and we’ll do our best to help you.

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    If you approve my payment break extension, when will it start?

    Once we approve this break for you, we will confirm this to you in writing.

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    If you approved a term extension, when will my repayments change?

    Once we approve the term extension for you, we will write to you to confirm your repayment start date.

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    How will the payment break affect my credit rating?

    There will be no negative effect on your credit rating if you take a payment break because of COVID-19.

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    If I take a payment break, can I make additional manual repayments if my situation improves?

    You can make additional payments, which will reduce the mortgage loan balance, even if you are on a payment break.

     

    If you can continue or go back to making payments it is in your best interests to do so as the cost of credit may increase because of the payment break.

     

    If you are on a variable interest rate, you can make additional payment(s) to your mortgage account as an overpayment to reduce your monthly repayment amount, or to reduce your mortgage term, without incurring an early repayment charge. An overpayment is where you make additional payment(s) towards part, or all, of the total amount of your repayments that were deferred during your COVID-19 payment break or where you make additional payment(s) in excess of the total amount deferred.

     

    If you are on a fixed interest rate, you can make additional payment(s) to your mortgage as an overpayment to reduce your monthly repayment amount, or to reduce your mortgage term. You can make additional payments up to the total amount of the repayments that were deferred during the COVID-19 payment break without incurring an early repayment charge. We may charge you an early repayment charge on any additional payment(s) made above the total amount deferred.

     

    Here is an example to explain how this works in practice. Katie and Josh are on a fixed interest rate and have availed of a COVID-19 payment break for 6 months during which time they deferred 6 payments of €1,000 for each month of the payment break (A deferred amount total of €6,000) and have now started making monthly repayments again as the COVID-19 payment break has ended. If they have available funds they can lodge up to €6,000 to their mortgage account without incurring an early repayment charge. These additional lodgements, on top of their scheduled monthly repayments, may help reduce the cost of credit of the loan.

     

    If you would like to make an overpayment on your mortgage account call us on 1850 565 500 to discuss your options or please complete the attached application form and post it to us at Home Mortgage Operations, Accounts Section, 1 Adelaide Road, Dublin 2. DX 183, Dublin

     

    For further information on early repayment charges click here.

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    Will I be told when the payment break extension has been applied to my mortgage?

    Yes. A team member will call you, check some details with you and confirm when the COVID-19 payment break extension will apply to your account. We will also send you a letter to confirm the details.

     

    If you have any other questions on how the payment break will operate, please contact our Credit Support Unit on 1850 654 329.

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    What documents do I need to apply for a payment break?

    You don’t need to give us any documents to apply for a payment break. When you contact us online, our team member will check some details with you to apply the payment break but you don’t need to send us any documents.

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    I have more than one mortgage, do I have to apply for each payment break separately?

    You will only need to apply once.

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    How much will it cost me in the future if I take a three month moratorium?

    Once we apply a three month moratorium to your account, you will have no mortgage payments for those three months, unless of course you also pay insurance premiums.  

     

    When the three months are up, we will then spread the three payments over the term that’s left on your mortgage. That means the three month moratorium will result in higher monthly repayments for the term of the loan.

     

    The table below shows some examples of the additional cost of credit from taking a three month payment break. These are illustrative only and are based on a typical mortgage where the customer lives in the property with balance of €100,000 and where value of the home is greater than 80% of the loan, with a variable rate of 3.15% for the full term of the mortgage.

     

    Time left on mortgage  15 years 20 years 25 years 30 years
    Balance left on mortgage 100,000 100,000 100,000 100,000
    Interest Rate 3.15% 3.15% 3.15% 3.15%
    Monthly payments €697.82 €562.14 €482.05 €429.74
    Payments during the three month payment break   €0.00 €0.00 €0.00 €0.00
    Capital and interest payment after a three month payment break €712.66 €571.73 €489.09 €435.32
    Payment difference per month €14.84 €9.59 €7.04 €5.58
    Total interest paid over the time left on the mortgage €25,607.36 €34,912.77 €44,614.96 €54,705.28
    Total interest paid over the time left on the mortgage if a three month moratorium is taken €26,140.81 €35,499.49 €45,258.48 €55,409.15
    Difference €533.45 €586.72 €643.52 €703.87

     

    If you can continue or go back to making payments it is in your best interests to do so as the cost of credit may increase because of the payment break.

     

    If you are on a variable interest rate you can make an overpayment to reduce your monthly repayment amount or your mortgage term without incurring an early repayment charge. An overpayment is where you make additional payment(s) towards part, or all, of the total amount of your repayments that were deferred during your COVID-19 payment break or where you make additional payment(s) in excess of the total amount deferred.

     

    If you are on a fixed interest rate, you can make additional payments up to the total amount of the repayments that were deferred during the COVID-19 payment break without being charged an early repayment charge. We may charge you an early repayment charge on any amount above the total amount of the repayments that were deferred during the payment break.

     

    Here is an example to explain how this works in practice. Katie and Josh availed of a COVID-19 payment break for 6 months during which time they deferred 6 payments of €1,000 for each month of the payment break (A deferred amount total of €6,000) and have now started making monthly repayments again as the COVID payment break has ended. If they have available funds they can lodge up to €6,000 to their mortgage account without incurring an early repayment charge. These additional lodgements, on top of their scheduled monthly repayments, may help reduce the cost of credit of the loan.

     

    If you would like to make an overpayment on your mortgage account call us on 1850 565 500 to discuss your options or please complete the attached application form and post it to us at Home Mortgage Operations, Accounts Section, 1 Adelaide Road, Dublin 2. DX 183, Dublin

     

    For further information on early repayment charges click here.

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    How much will it cost me in the future to pay interest only on my mortgage for three months?

    Once we approve you for an interest only period of three months, you will only pay the interest portion of your mortgage payment unless of course you also pay insurance premiums.  

     

    When the three months are up, we will then spread the three payments over the term that’s left on your mortgage. That means the three month interest only period will result in higher monthly repayments for the term of the loan.

     

    The table below shows some examples of the additional cost of credit from paying interest only for three months. These are illustrative only and are based on a typical mortgage where the customer lives in the property with balance of €100,000 and where value of the home is greater than 80% of the loan, with a variable rate of 3.15% for the full term of the mortgage.

     

    Time left on mortgage 15 years 20 years 25 years 30 years
    Balance left on mortgage 100,000 100,000 100,000 100,000
    Interest Rate 3.15% 3.15% 3.15% 3.15%
    Monthly payments €697.82 €562.14 €482.05 €429.74
    Payments during three months of paying interest only €262.50 €262.50 €262.50 €262.50
    Capital and interest payment after three months of paying interest only €707.08 €567.25 €485.25 €431.91
    Payment difference per month €9.26 €5.11 €3.20 €2.17
    Total interest paid over the time left on the mortgage €25,607.36 €34,912.77 €44,614.96 €54,705.28
    Total interest paid over the time left on the mortgage if a three month interest only is taken €25,940.14 €35,225.51 €44,908.05 €54,979.20
    Difference €332.78 €312.74 €293.09 €273.92

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    Someone close has died, what do I do?

    Our Customer Service team are here to help. They will be your single point of contact. For support, call us on 1850 565 500 / (01) 665 8011.

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    Need extra help with your banking?

    In this difficult time, we know some of our customers may not be familiar with managing banking from home or may feel vulnerable. We have a dedicated team here to help which can be contacted on 1850 565 500 / (01) 665 8011.

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    If I had 12 months interest only previously applied to my account, what will happen once my COVID-19 payment break ends?

    Once your COVID-19 payment break ends, you will continue to pay interest only until the end of the 12-month interest only period. For example if you had 10 months interest only remaining, you took a COVID-19 payment break for three months, you will return to paying interest only for the remaining seven months.

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    Can I have the term extended on my mortgage so that my repayments don’t increase once my COVID-19 payment break is finished?

    Yes, to apply for a term extension on our mortgage, you can call our team on 1850 654 329 or +353 1 665 8082. For Payment Breaks expiring in October 2020, in order to avail of a Term Extension, please ensure that you submit your request by 17:00 on the 29 October and be available for a call back within 24 hours of submitting your request. 

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    Do I need to change my direct debit if my payments are changing?

    No. However, if you cancelled your direct debit due to a COVID-19 payment break you will need to set it up again. You can call us on 01 6658082 to set it up again.

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    What if I pay by another method?

    If you don't pay by direct debit, you may need to adjust the payment amount yourself.

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    Can I cancel my payment break if I change my mind?

    Yes, after your payment break has been confirmed in writing you may contact us to cancel it if you change your mind. We will write to you to let you know that you have a 14 day cooling off period. During this time you can contact us to cancel the payment break without any increase in the cost of credit on your account. In addition, you can cancel your payment break and revert to your previous repayment structure at any time, however please be aware that if this is after your cooling off period  your cost of credit will still increase for the time that you had  the payment break applied to your account.

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    Can I have a third payment break?

    If you have already had two COVID-19 related payment breaks you cannot have another one.

    However, if you expect that you will have a more long term loss of income as a result of COVID-19, and you will be unable to make your repayments, please go to Worried about Payments

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    How do I get an updated cost of credit for my mortgage?

    When a payment break ends, it increases the monthly payments over the remaining term of your loan to spread the cost of what you weren’t paying during the payment break over the original term of your mortgage. If you want to get an updated personalised cost of credit for your mortgage account as a result of having a payment break, you can call us on 01 771 4499, Monday to Friday 9:00 to 17:00, Saturday 9:00 to 13:00.

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    I haven’t applied for a COVID-19 payment break. What are my options?

    The deadline to apply for your first COVID-19 payment break was 30 September and applications are now closed.

    If you are experiencing an income reduction because of COVID-19, we have more options for you here.

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