COVID-19 - Central Bank Confirms No Impact on Borrowers Credit RatingFollow @MABSinfo
Posted: 17.50 | 30th March 2020
The Central Bank of Ireland (CBoI) has confirmed that there will be no impact on a consumer’s credit rating if they take part in the mortgage repayments breaks as a result of COVID-19 related financial difficulty. Information on measures introduced by the main banks and credit servicing funds, or sometimes called “vulture-funds” was announced by the Banking and Payments Federation of Ireland (BPFI) on the 19th March 2020.
Brian Hayes, CEO, BPFI has welcomed this development, and said that "this confirmation provides borrowers with reassurance and confidence that they can avail of the payment break, and do not have the worry about it impacting their credit record on the Central Credit Register." Read the full statement here.
It is important to note that a borrower who takes an agreed break, or “holiday” from paying their mortgage will appear on the credit register as no “missed payments”. However, this is only the case if the borrower has engaged with their lender in good time and agreed on the break.
Borrowers who are at risk of falling behind on their mortgage repayments should speak with their lender without delay. MABS advisers are available to negotiate on your behalf if you cannot talk with your lender directly. Contact details of your local office can be found here. The MABS national helpline is also available on 0761 07 2000, Monday to Friday, 9 am to 8 pm.
The full CBoI update is available here.
Read our Mortgage Payment Suports FAQs for more information on what taking a mortgage repayment holiday might mean for you.