Mortgage payment breaks

How do mortgage payment breaks work in Ireland?

A mortgage payment break – also called a temporary deferral, payment holiday or moratorium – lets you temporarily pause or reduce repayments if you’re in financial difficulty, but it must be agreed with your lender in advance. Options can include a full break, paying interest only or using credit built up from previous overpayments.

While an agreed break won’t harm your credit record, missed payments without agreement will. When the break ends, your repayments usually increase because the unpaid amounts are added to your balance, meaning you pay more interest overall. Before applying, speak to your lender to understand the long‑term cost and check whether other options might suit you better.

When can you apply for a payment break?

You may be eligible if you have an unexpected drop in income, are at risk of arrears or have additional expenses. Payment breaks must be agreed with your lender in advance. Eligibility depends on lender criteria and may require proof of circumstances.

What options are available for payment breaks?

Options vary by lender and may not all be available.

• Take a break for a specific period, such as three or six months, with no payments during this time
• Skip specific payments in a year, spreading repayments over 10 months instead of 12
• Pay interest only for a set period, reducing monthly outgoings but not the capital
• Use credit built up from previous overpayments to pay all or a portion of your mortgage repayments

What happens when repayments resume?

Your repayments will increase, as postponed payments are added to your mortgage balance and the term stays the same. Increased repayments may include extra interest.

How do payment breaks affect your credit history?

• Any missed payment not agreed in advance, even accidental, can negatively impact your credit history.
• Agreed breaks do not harm credit, but missed payments do. Talk to your lender to be certain.

What should you consider before taking a payment break?

• Discuss options with your lender and agree on the terms.
• Be aware that stopping or reducing repayments now will mean higher payments later.
• Check long-term cost and ask the lender for an estimate. Finally, review your budget and find out if savings can be made elsewhere using our budgeting resources.

Can you apply if you’re already in arrears?

Most lenders require you to be up to date with your repayments before granting a payment break. If you’re already in arrears, you may need a different arrangement such as a restructuring plan.

Do you need to give a reason for requesting a break?

Yes, lenders usually ask for details about your financial situation, such as:

• A drop in income
• Unexpected expenses 
• Other circumstances affecting your ability to pay

You may be required by your lender to complete a Standard Financial Statement (SFS).

How much extra will a payment break cost you?

You will pay more interest because your mortgage balance will be higher for longer. Ask your lender for an estimate before agreeing to a break.

How do you apply for a mortgage payment break?

Contact your lender directly. Most lenders require you to complete an application form and provide information about your financial situation.

How many times can you take a payment break?

This depends on your lender’s policy:

• Some allow occasional breaks
• Others only permit them in exceptional circumstances

Do you still need to pay insurance during the break?

Yes, home insurance and mortgage protection policies usually remain in place and must continue to be paid.

Regulatory protections for mortgage payment breaks

Mortgage payment breaks in Ireland are governed by consumer protection rules and lender obligations. The Mortgage Arrears Resolution Process (MARP) sets out clear steps that lenders and borrowers must follow if arrears occur, ensuring structured support and transparent communication.

Where can you get free, independent money advice?

If you’re struggling with debt or money management, the Money Advice and Budgeting Service (MABS) can help. MABS is Ireland’s free, confidential, and independent service for anyone facing financial difficulties. Their advisers can:

• Help you create a realistic budget and manage your household finances
• Offer advice on dealing with debts and negotiating with creditors
• Support you if you’re having trouble paying your mortgage or other bills
• Explain your rights and options if you’re in financial difficulty
• Assist with applications for social welfare supports or insolvency solutions

You can contact MABS online, by phone or in person at a local office. The service is free and available to everyone in Ireland.