Mortgage freeze for landlord if tenant loses job due to Covid19?

Zascar

I have a small rental property and sadly my new tenant has lost his job due to Covid19. I heard banks are giving mortgage freezes to people who lose their jobs, but what about landlords? I still have a job but I can't pay the whole mortgage on my own. Does anyone know what the rules are here before I call them?

7SGNFF

I spoke to the local branch of EBS today by phone on a similar topic. You can apply for an interest only payment for a fixed period of time such as 3 months.

Zascar

Thanks, I was hoping for payment suspension - not sure what interest only will do for the payments etc.

Has anyone else done the same?

dotsman

Well, hope you are with a proper bank and not EBS!

A proper bank should consider a repayment holiday. You should note the additional expense of this holiday though.

Zascar

Luckily Ulster Bank are a low more generous: https://www.bankofirelanduk.com/covid-19-update/ - 3 month payment holiday by filling in the form

7SGNFF

Look at your latest account statement or log in online to your account - it should show you what portion is interest and what portion is capital, on repayments. However, this will depend on who your mortgage is with but since all the financial institutions doing mortgages come under Central Bank rules, there is unlikely to be any major differences (my thinking). My advice is phone your mortgage provider and ask them to clarify.

7SGNFF

For ROI
https://personalbanking.bankofireland.com/borrow/mortgages/mortgage-repayment-covid-19/
Of note "At the end of the Payment Break period your repayments will be adjusted so that your mortgage will be repaid within its original term. That means your ‘Break’ repayments will be spread over your remaining mortgage, which means your new repayments will be higher than they were before the Payment Break".

7SGNFF

The break is available to mortgage holders of both Private Dwelling Home (PDH) and Buy-to-let
(BTL)
Source: https://personalbanking.bankofireland.com/app/uploads/Covid19-Payment-Break-FAQ-2.pdf

coylemj

Zascar wrote: »

Thanks, I was hoping for payment suspension - not sure what interest only will do for the payments etc.

If you're relatively early into the loan period, interest will account for the greater part of the monthly repayment. So you'd need a full payment holiday - paying the interest alone won't reduce the payment much.

But interest will continue to accrue, the banks are not giving away free money. So you will end up paying more (by way of interest) by the end of the mortgage.

wandererz

(not a landlord).
Wife called up PTSB about a payment holiday. They listened to her & did not give ANY hassle at all.
3 month payment break. It will be added onto our term and cost an extra e20 or so over 175 months left.

Give your bank a call & see what they say.

Kudo's to PTSB in this case, no messing, no hassle, no major questions. Superb understanding & service.
Hats off to them in my opinion.