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COVID-19 Housing Loan Repayment Break for Local Authority Borrowers


COVID-19 – Additional Measures  for Local Authority Mortgages

Provision of a Fourth Mortgage Payment Break


The Minister for Housing, Planning and Local Government, Mr. Darragh O’Brien T.D., has confirmed further additional arrangements to be put in place to support local authority borrowers who are experiencing financial distress arising out of the continuing COVID-19 emergency.


This additional arrangement provides for:

Amendments to the mortgage payment break of which the main ones are:

  • Introduction of a fourth mortgage payment break for local authority borrowers bringing the total of the four mortgage payment breaks up to a maximum of 12 months
  • An extension of the closing date for first time applicants applying for a first Mortgage Payment Break from 31st December 2020 to 31st March 2021.

  • Clarity that all Mortgage Payment Breaks must be completed by 31st March 2022;

  • The removal of the requirement for follow on Mortgage Payment Breaks to be back to back with effect from 1 January 2021.  Borrowers who previously completed a Mortgage Payment Break can apply for a second, third or fourth Payment Break if circumstances warrant it, even if there was a gap between Mortgage Payment Breaks; however, all Mortgage Payment Breaks must be completed in full by 31st March 2022.

  • Local Authorities may now decide whether a fourth Mortgage Payment Break is the appropriate option for each borrower:

  • The requirement for stronger engagement by local authorities with local authority borrowers in their third payment break, as set out in Circular 29/2020, is retained.  This engagement should help inform local authorities whether a fourth Mortgage Payment Break is appropriate for the borrower.  Further engagement may be required to understand the borrowers situation to determine whether a return to repayments or whether the mortgage resolution arrears process (MARP) would be more appropriate for some borrowers, depending on their circumstances


The Application Forms and Frequently Asked Questions can be accessed at the links below:


For further information please contact the Housing Loans Department, Donegal County Council on 074 9172587 or via email on [email protected]