Banking industry confirms new 30 September deadline date for new payment break applications18th June 2020
Mortgage payment break applications now just 3% of what they were at the peak of Covid-19
Banking & Payments Federation Ireland (BPFI) Chief Executive Brian Hayes has welcomed the announcement by the EBA to extend the deadline date for new payment break applications to 30th September, however he said he expected the demand for such breaks to taper in the weeks ahead given the rapid fall in applications already seen by the industry in recent weeks following the lifting of Covid-19 restrictions and its impact on the economy and employment.
Mr. Hayes said: “The Payment Break offered by lenders has been a hugely significant measure throughout the Covid-19 crisis, a factor acknowledged by the EBA in their statement from Paris this morning. Our Members’ customer engagement teams stand ready to support their customers at this time.”
Commenting on the falling demand for mortgage payment breaks Mr. Hayes said: “Figures from across the sector this week indicate that demand for mortgage payment breaks is now just 3% of what it was at the peak of Covid-19, indicating a strong fall off in the demand for these breaks.”
“Our Members were receiving thousands of applications a day in the early stages of Covid-19 in March and April; however, we are seeing a significant reduction in demand, falling to just 30 applications a day in the case of some Members. The fall in demand is not unexpected given the gradual re-opening of the economy and the return to work amongst employees. Already we have seen a recent reduction of 100,000 or 17% decline in the number of employees receiving the pandemic unemployment payment (PUP) in a short period and the continued re-opening of sectors that had been most severely hit in the early stages of the Covid-19 pandemic”.
Mr Hayes encouraged those seeking advice or making a decision on an application to access the BPFI’s Comprehensive Guide to the COVID-19 Payment Break & Repayments at the BPFI website.
Contact: Jillian Heffernan, Head of Communications, 087 9016880 or firstname.lastname@example.org
Notes: Banking & Payments Federation Ireland (BPFI) represents the banking, payments and fintech sector in Ireland. Together with its affiliates, the Federation of International Banks in Ireland, and the Fintech & Payments Association of Ireland, BPFI has some 100 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.