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Warning that mortgage interest...

Coronavirus

Warning that mortgage interest could increase during payment break

Rebecca Noonan
Rebecca Noonan

06:53 6 May 2020


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Borrowers who take a mortgage payment break are being warned they could end up having to pay back thousands of Euro extra in interest.

Bonkers.ie says taking a six-month break being offered by banks could cost some customers more than €4,000.

Covid-19 has resulted in hundreds of thousands of mortgage holders being either laid off work or having their pay cut.

Darragh Cassidy, from the price-comparison website, says people need to be aware of costs linked to the payment break.

"You would look at someone who had €100,000 remaining on their mortgage and a term of ten years, the extra amount repayable would be just under €1,000 spread over the remainder of the years.

"But if you were let's say maybe at the start of your mortgage, where you had 30 years left on your mortgage and a balance of €200,000, you're looking at an extra amount repayable of close to €3,000."


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