As the Deputy will be aware, on 18 March last, the Banking and Payments Federation of Ireland (BPFI) announced a coordinated approach by banks and other lenders to help their customers who were economically impacted by the Covid-19 crisis. The measures included flexible loan repayment arrangements where needed, including loan payment breaks initially for a period up to three months and then subsequently extended for up to six months.
Banks have now provided for flexible options for borrowers who can recommence payments following a payment break, and the BPFI has produced a useful guide on this - https://www.bpfi.ie/wp-content/uploads/2020/09/Final-BPFI-Coming-off-the-COVID-19-Payment-Break.pdf. The Central Bank has also updated its Covid-19 FAQ in relation to mortgage payment breaks on 18 September.
However, I continue to make it clear to lenders - and I reiterated the point at a meeting with the BPFI and the CEOs of the main banks on Monday - that they should continue to work with and pro-actively assist their customers who are still experiencing difficulty as a consequence of Covid-19. I expect sympathetic and encouraging customer engagement from lenders at this time. This applies to mortgage holders across the country, including those in Dublin to whom the Deputy refers.
I would encourage any borrower who feels they may have difficulty in resuming payments after a Covid-19 payment break to contact their lender and if possible to do so before the payment break end date. Borrowers have a suite of regulatory protections and lenders have specific obligations, under the Central Bank consumer protection framework, to support and work with borrowers in arrears or in pre-arrears. In particular, lenders are obliged to engage and work with co-operating borrowers to identify an appropriate alternative repayment arrangement having regard to the particular circumstances of a case, and lenders should use the full suite of solutions available to them for their borrowers who continue to be impacted by Covid-19. In this regard, it is important to note that, while the European Banking Authority recently stated it would not extend its 30 September closing date for applications to qualify for a Covid-19 payment break, banks can continue to support their customers with further breaks in payment after 30 September on a case by case basis if needed with such loans classified according to the normal prudential framework.