Contact your lender as early as possible to discuss your options.

If you can't afford to repay your mortgage or loan due to COVID-19 – or any other reason – you should contact your lender as early as possible and discuss what options are available to you.

Your lender will consider your particular situation and discuss a range of options to help you deal with financial difficulties at any stage. Every borrower’s circumstances are different, but these may include:

• A payment break is where you agree with your lender to postpone your repayments, or agree a reduced payment where your loan repayments are reduced for an agreed period of time
• An “interest only” arrangement is where you only pay the interest payments on your mortgage loan for a period of time.

Our consumer protection framework is designed to protect your interests, particularly in times where you may experience financial difficulties because of illness or loss of income. All regulated lenders should engage with you sympathetically and positively, with the objective at all times of assisting you to meet your loan/mortgage obligations. We are monitoring this process to ensure the requirements, and our expectations, are being met.

See also:

• Money Advice and Budgeting Service (MABS)
• Find out how the Central Bank protects you if you can't pay your mortgage.

No payments, or reduced payments, on a loan for an agreed period of time.

A COVID-19 payment break (also known as a "moratorium") is where you agree with your lender to postpone or reduce your loan repayments for an agreed period of time. Payments on mortgages (for private dwellings and buy-to-lets), personal loans and business loans may be deferred for up to six months for customers facing financial difficulties due to COVID-19.

A payment break can give you breathing space in these difficult times when you are experiencing financial difficulties due to the impact of COVID-19 .

When you agree a payment break with your lender, it is essential that they explain how the break will affect your loan (including on the overall cost and revised monthly repayments). For example, your lender may spread your repayments over the remaining term of the mortgage/loan, to allow you to repay it within the original term. This means that you will have to pay higher repayments (spread out) over the remaining term of the loan. Alternatively, your lender may offer you the option to extend the term of the loan by the length of the payment break. This spreads your repayments over a longer period. Both options mean your loan will cost you more overall. Your lender should let you know what the additional costs are likely to be.

You can apply for a payment break by contacting your lender.

If you are experiencing financial difficulties due to COVID-19 and you want to apply for a payment break on your loan, you should contact your lender.

We have communicated with individual lenders to make sure that they have a simple application process for payment breaks. This may vary across lenders, for example, some may offer online, email or telephone applications.

All lenders are dealing with a considerable increase in queries and applications at this time, so you should view your lender’s website for the latest updates and information applicable to you.

No, you should not stop making your repayments without an agreed payment break.

It is important that you do not stop making your mortgage or other loan payments unless you have agreed a payment break with your lender.

If you stop making repayments but have not agreed a payment break, then your lender will be obliged to report the missed payments to the Central Credit Register, and this information will appear on your credit report.

Talk to your lender about what is most appropriate for you.

Payment breaks should generally be available to customers experiencing financial difficulties due to COVID-19, including those borrowers currently meeting the terms of alternative repayment arrangements.

If you are in arrears, you will need to discuss this with your lender. Your lender will consider whether a payment break is appropriate for you as well as any measures that are already in place to help you through your payment difficulties. There are alternative arrangement options that may be more suitable to you, so engage with your lender to find the right option for you.

If you availed of a COVID-19 payment break, your lender will contact you in advance of it ending. It is important that you engage with your lender at this point, and understand the options available to you and what suits your circumstances best.

We have communicated with lenders about our expectations around payment breaks and the options that should be available to borrowers. If you are in a position to return to full repayment of your loan, there are generally two options available:

• You can return to full capital and interest repayments within the existing term of your mortgage. Choosing this option will mean you will end up paying a higher monthly amount, but your mortgage will be repaid in full within the original term of your mortgage contract. 
• You can extend the term of the mortgage or loan by the length of the payment break. Choosing this option means you will end up paying a similar monthly amount as before you took the payment break but it will take you longer to pay off your mortgage in full.

Both options will result in an increased cost of credit and by engaging with your lender, these options and costs can be clearly explained to you. 

Engage with your lender as early as possible.

If you think you will continue to have difficulties with your mortgage or loan repayments after taking a COVID-19 payment break, lenders have a range of alternative repayment arrangements which may be available to you.

For mortgage loans, there are protections in place such as the Code of Conduct on Mortgage Arrears which protects borrowers with mortgages on their home, or on their sole property.

It is important to engage with your lender as many of the protections only apply if you engage.

You can find out more in our explainer: How does the Central Bank protect me if I can’t pay my mortgage?

In addition, the Central Bank has written to lenders laying out how they should support borrowers affected by the COVID-19 Pandemic.

• Dear CEO Letter - Expectations for lenders in supporting borrowers affected by the COVID-19 Pandemic

There are different requirements for lenders to follow under the Consumer Protection Code 2012 if you are having difficulties with a mortgage on an investment or second property, or with a personal loan or credit card debt.

If your circumstances change after agreeing an alternative repayment arrangement, including if they improve, you should let your lender know as soon as possible. The arrangement you are on might not be appropriate any longer, so they will review and consider what other options are available.

This can be a difficult time for borrowers, so engaging with your lender and affording yourself all the protections in place is the best option. You can also get advice from the Money Advice and Budgeting Service to find the right solution for you.

Read more in our explainer: 'How does the Central Bank protect people in mortgage arrears?'

Taking a payment break on your mortgage may impact your cover under your mortgage protection insurance policy. You should contact your policy provider to discuss the impact, if any, of a payment break on your mortgage protection policy cover and payments.

It is important to be aware that even with a payment break on your mortgage, you may still have to make your mortgage protection payments.

As your payment break comes to an end, you should contact your policy provider to ensure you understand the impact any options you select after the payment break, for example a term extension, may have on your mortgage protection policy.

During this current period of uncertainty, we expected lenders to pause repossession action on all residential properties. You will need to discuss what this means for you with your lender.

Under the Code of Conduct on Mortgage Arrears, a lender may only commence legal proceedings for repossession where it has made every reasonable effort to agree an alternative repayment arrangement with the borrower and other clear requirements are met, or where the borrower has made no efforts to cooperate.

If you are having difficulties making credit card repayments or believe you may do in the future as a result of COVID-19 you should contact your credit card provider as early as possible to discuss your options. We expect providers to actively support you.

You will have to check with your lender.

The Central Credit Register produces credit reports for lenders and borrowers. Importantly, it does not produce a credit score or a credit rating; it simply records the information that is submitted by lenders. It is factual, impartial information. The onus is on the lender at all times to ensure that the information reported to the Central Credit Register correctly reflects arrangements agreed with you.

Every month lenders submit personal and credit information on loans over €500 to the Central Credit Register. The Central Credit Register matches this information to create credit reports for lenders and borrowers.

When a lender agrees a COVID-19 payment break with a borrower, the lender should not report this to the Central Credit Register as payments being "missed" or "past due" or the loan as being "restructured", during the period of the payment break.

Example

If a lender agrees with a borrower to a payment break with no payments at all for a period of three months, starting in April. The lender will not report this as "missed payments" or a "restructure" event to the Central Credit Register for April, May and June.

If payments were being made, the amount recorded as the "Outstanding Balance" would normally decrease during those months. However as no payments are being made during the payment break period, the "Outstanding Balance" recorded will not decrease. The "Outstanding Balance" information is contained in the credit report.

There is a lot of information available on the Central Credit Register’s website including:

• A list of all lenders who submit information to the Central Credit Register
• A sample credit report and more information on your rights
• A comprehensive FAQ

You can, if you wish, place an explanatory statement on your credit report to explain your current circumstances where your loans are concerned.

It is important to note, only the Central Credit Register is within the remit of the Central Bank of Ireland; private credit bureaux are not. In order to determine if your credit rating will be affected, you may wish to check with your lender to see if they submit information on loans to any private credit bureaux, which may produce credit ratings or credit scores.

See also

• What is the Central Credit Register?

Your cost of credit is the difference between the amount you borrow and the total amount you repay over the lifetime of the loan. Cost of credit can be influenced by interest charged, fees, repayment frequency, term of your loan and other charges. By engaging with your lender, costs can be clearly explained to you.

Yes, all lenders are continuing to process applications for mortgages.

"Mortgage approval in principal" is where a lender states how much money it is prepared to lend you based on an initial assessment of your financial situation for example, your savings, income, outstanding loans, employment status etc.

However mortgage approval in principle is not a formal loan offer or contract. Once you have found a property, you will then need to request a "formal letter of offer" from the lender.

Before issuing you with the letter of offer, your lender is required to undertake a full assessment of your individual circumstances. These requirements are designed to protect you, so that lenders fully assess that the loan is still suitable for your needs and affordable for you, based on your individual circumstances.

As part of your lender's assessment they will check that your financial situation has not changed since receiving mortgage approval in principal. If your financial situation has changed, for example due to COVID-19, this may impact on your application. For example you could be approved for a lower mortgage amount, or your application could be declined. This is a commercial decision for your lender to make, following their assessment.

If you already have a letter of offer and are ready to draw down your mortgage, your lender may also ask whether there has been any change in your circumstances, for example, due to COVID-19. If so, your lender may re-assess your application to determine if the loan is still suitable and affordable for you.

Your lender can refuse the draw down of the mortgage where it has concerns about your ability to repay. If your lender decides not to progress with your mortgage, it must inform you of this decision without delay, explain why your application has been refused and provide these reasons in writing if requested.

The Central Bank has written to lenders outlining its expectation that mortgage lenders clearly communicate with customers at all stages of the mortgage application process, including those customers who have already received loan offers. Mortgage lenders must make clear to customers that where there has been any material change to the customer’s circumstances prior to the drawdown of funds, the loan offer may subsequently be withdrawn, paused or varied. At a minimum, this communication must be included in the loan offer letter.

View Dear CEO Letter

Lenders have supports in place to help you if you have been affected by COVID-19. However if you are not happy with your lenders decision you can make a formal complaint to your lender directly.

If you are still unsatisfied with the response you get, you can progress your complaint with the Financial Services and Pensions Ombudsman.

 For more about making a complaint see “Complaints” section below.

Contact your provider, firms must engage positively.

If you are concerned about the impact that the COVID-19 crisis may have on your insurance policies (for example, you are unable to repay premiums, or you have concerns about renewing your policy), you should contact your insurance provider (insurance firm or broker) to discuss.

If you are uncertain whether your health or travel insurance policies offer particular cover, your insurance provider can advise on the specifics of your policy.

Insurance firms must have processes in place to engage positively with you if you are experiencing difficulties in the payment of premiums because of COVID-19.

We expect firms to communicate in a clear, transparent manner to you about the levels of cover provided by individual insurance policies. Firms should prominently display on their websites the key relevant information about COVID-19 and contact details should you have any queries.

If firms are making changes to terms and conditions to insurance policies going forward, they need to make consumers and intermediaries aware of the changes made and the potential impact the changes could have on future claims.

Firms should prominently display on their websites the key relevant information about COVID-19 and contact details should you have any queries.

Firms must offer a fair settlement arrangement if you are entitled to one under your policy.

Insurance firms are required to take account of the challenging situation in which many of their customers find themselves and to put forward consumer–focused solutions for insurance payment breaks, policy rebates and claims in light of the emergency. This is in line with the Central Bank’s expectations of both life and general insurance firms (including travel insurance). Firms must proactively communicate in a clear, transparent manner to customers about the levels of cover provided by individual insurance policies.

In relation to insurance claims, firms must ensure that any settlement offer made to you is fair, takes into account all relevant factors and represents the firm’s best estimate of your reasonable entitlement under the policy. Firms must ensure that they handle claims effectively and properly.

Although we expect that most policy wordings are clear in terms of what cover is provided and what is excluded, where there is a doubt about the meaning of a term, the interpretation most favourable to you should prevail. Firms must ensure that claims are appropriately assessed and where there is insurance cover in place that claims are accepted and paid promptly.

We expect all firms to offer to assist you in the process of making a claim including, where relevant, alerting you to policy terms and conditions that may be of benefit to you.

Firms must ensure that claims are appropriately assessed and where there is insurance cover in place, claims are accepted and paid.

Yes—if your health insurance policy includes private hospital cover.

As part of the state’s response to the COVID-19 crisis, the Department of Health, Health Service Executive and the Private Hospital Association reached an agreement for private hospitals to come under public control for a period of at least three months, starting from 30 March.

This means that private hospital cover, which is a significant benefit of most private health insurance products, will not be available to private health insurance customers for the duration of this agreement.

The Central Bank of Ireland wrote to the Chairs and CEOs of regulated insurance firms on 27 March requiring them to put forward consumer-focused solutions for insurance payment breaks, policy rebates and claims in light of the COVID-19 public health emergency.

Following this, Vhi Healthcare, LAYA Healthcare and Irish Life Health have announced that they are to return value to their customers affected by the private hospital agreement.

You should contact your insurance provider to discuss your options before making any changes to your policy or cancelling it. It is important to note the following:

• If you cancel a policy mid-term, you may have to pay a cancellation fee.
• If you switch providers mid-term, your old insurer may ask you to pay the government health levy upfront.
• If you cancel your policy now and take out new insurance post COVID-19, your new insurer may apply a “waiting period”, which means you do not get any benefits on your new plan until a period of time has passed.

Before you make any decision, you may wish to read more information from the Health Insurance Authority.

This will depend on your policy – so check with your insurance provider first.

In some health insurance policies for example, your insurer may apply a “waiting period”, which means you do not get any benefits on your new plan until a period of time has passed.

Your insurer should inform you of how your refund will be handled.

You should contact your insurer for details of any premium refunds, waivers or other ways of returning value to you. Your insurer should also inform you of how this will be handled. Your insurer can also advise you on the range of benefits and services they continue to provide through this period.

Most firms websites will be able to answer these questions for you immediately. However, check your policy details and contact your insurance provider directly if you are still unclear. For example, COVID-19 will not be one of the specified illnesses cover under a specified illness plan, however you may be able to able to claim for a condition arising from COVID-19 if it is one of the specified illness in your policy.

Income protection cover replaces income where you are unable to work medically (illness or injury) but does not cover redundancy or unemployment.

Life cover pays out when whoever is covered under a policy dies.

The Central Bank wrote to the Chairs and CEOs of regulated insurance firms on 27 March requiring them to put forward consumer-focused solutions for insurance payment breaks, policy rebates and claims in light of the COVID-19 public health emergency.

Following this, a number of motor insurers announced that they are offering their customers refunds or discounts to reflect an expected lower level of claims due to the travel restrictions imposed during the COVID-19 emergency.

You should contact your insurer or insurance broker for details of any premium refunds or discounts you may be due. Your insurer should also inform you of how this will be handled.

Check with your insurance provider. If you have tested positive for COVID-19 or are in self-isolation, your application may be deferred until you have fully recovered and have been given the all-clear.

Anyone who applies for cover as normal, may be asked for additional medical evidence. Your insurer will use this to assess your application and decide if you should be given cover. This may take longer than usual because of COVID-19.

If your claim was rejected, under the Consumer Protection Code firms must explain the reason why in writing and give you details of how you can appeal the decision.

For information about making a complaint see “Complaints” section below.

Euro notes and coins (i.e. cash) have legal tender status in Ireland. However, by law a retailer does not have to accept them as a form of payment when the retailer has specified in advance that it will only accept other payments such as debit or credit cards.

If a retailer does not specify clearly in advance the type of payment it is prepared to accept, the retailer must accept cash.

The Central Bank is responsible for making sure there is an efficient and effective payment and settlement systems in Ireland, both electronic and cash. It does this so that consumers and businesses can have a choice of payment methods appropriate to the transaction types. The Central Bank supports choice for consumers in retail outlets, particularly for low value transactions.

Regarding the impact of COVID-19 (and cash safety), we have been advised that the risk of infection with banknotes is no greater than other kinds of surface that people come into contact with in daily life.

Alternative arrangements should be put in place.

We are working constructively with all the sectors we regulate, recognising the challenges they face to maintain continuity of business and provision of service to customers in light of the global public health emergency caused by COVID-19.

Our core focus is on ensuring that the financial system can continue to provide services to households and businesses at this difficult time. We also expect regulated firms to have appropriate contingency plans in place to be able to deal with major operational events should they occur.

The retail banks and credit unions have business continuity plans, including contingency plans, in place on how to assist consumers if there are branch or office closures due to business disruption.

We expect banks and credit unions to have alternative arrangements in place so that they can continue to provide services to you, including information on how to access banking and credit union services if some branches have to close. We will continue to work with banks and credit unions to ensure that where they have to take the decision to close offices or certain branches, that consumers who do not have online facilities will be able to avail of an alternative means to access their account. We expect firms to communicate with you to let you know how you can access their services.

Alternative arrangements should be put in place.

We expect regulated firms to have appropriate contingency plans in place to be able to deal with major operational events, should they occur, and we are engaged with firms across the financial system to ensure that firms are responding effectively to the evolving situation.

We expect credit unions and banks to have alternative arrangements in place so that they can continue to provide services to you, including information on how to access banking services if some branches have to close. We will continue to work with credit unions and banks to ensure that where they have to take the decision to close certain offices or branches, consumers who do not have online facilities will be able to avail of an alternative means to access their account. We expect firms to communicate with you to let you know how you can access their services.

Your bank may have priority hours in branches for elderly or vulnerable customers to ensure you can access your local branch when it is less crowded.  Banks are also helping customers who are cocooning to manage their banking in a safe way without leaving their home and have dedicated phone lines to assist cocooning customers during the COVID-19 crisis.

You may also be able to nominate another person you trust to help with your banking on a temporary basis. However, is important to keep control of your own money as much as possible and to reverse any temporary arrangement when assistance is no longer required from another person.   

Contact your provider, appropriate contingency plans should be put in place.

Regulated payment institutions and e-money institutions are required to protect users’ funds in accordance with the applicable legislation. This requirement is designed to protect these funds in the event of the failure or insolvency of the firm.

We expect regulated firms to have appropriate contingency plans in place to be able to deal with major operational events, should they occur, and we are working with the financial sector to ensure that firms are responding effectively to the evolving situation. If issues arise you should contact your service provider in the first instance.

The Deposit Guarantee Scheme protects depositors in the event of a bank or credit union authorised by the Central Bank of Ireland being unable to repay deposits. It remains operational throughout the COVID-19 crisis and is contactable via its website.

See also

• Deposit Guarantee Scheme

The COVID-19 outbreak has resulted in greater market ‘volatility’ or uncertainty – this  can mean significant losses for retail clients. Typically, investments are long term products, and short term investments can perform poorly—in good times and bad—even in relatively stable, less volatile market conditions.

Firms are required to monitor and evaluate the products they sell and to take into account changes to your risk profile as a result of COVID-19. Products that may have been considered suitable for sale to you previously, may no longer be suitable in the current climate.

When firms provide you with investment advice or make investment decisions on your behalf, they must:

• Act in your best interests at all times (including ensuring sales staff are not incentivised into meeting targets that may result in an unsuitable sale to you)
• Make sure that the product they recommend suits you (through a thorough assessment of your individual situation and needs)
• Explain the potential disadvantages/risks as well as the potential benefits of the investment
• Consider your risk tolerance levels
• Make sure that any communications they give you are clear, factual, informative and balanced

Some clients may seek to purchase risky and complex investment products without advice. Under regulations, firms must assess your knowledge and experience to determine whether the product is appropriate for you.

Firms must issue a clear warning to you if they consider that the product is not appropriate for you. You should familiarise yourself with the investment product, its features and its risks. You should also strongly consider any warning issued by the firm and whether you can afford to lose the money you invested.

Contracts for Difference (CFDs) are complex, leveraged, derivative instruments which enable investors to speculate on the short-term price movements of an underlying reference asset.

The Central Bank is aware and concerned that trading activity in CFDs has increased during this period of heightened volatility.

We previously released a statement highlighting these types of products, addressing the risks for retail clients investing in such complex and risky products and the new protections we introduced for investors in CFDs.

These included:

• Limits on excessive levels of leverage so that retail investors cannot lose more money than they put into their CFD account
• A prohibition on the use of incentives by a CFD provider
• A standardised risk warning on these short-term, speculative products.

We have been engaging with investment firms to make sure they are operating effectively and with sufficient staff to manage your queries and complaints (within an appropriate amount of time).

We have also reminded firms that they need to display key information prominently on their website. This includes information on COVID-19, relevant contact details and any operational changes that could impact you.

The Central Bank regulates investment providers and advisers. To operate legally in Ireland, they must first meet certain standards to be authorised and to continue in business.

You can search our registers to get a list of providers who are operating in Ireland and authorised by the Central Bank. This does not include firms operating cross border, who are authorised in other countries.

The Central Bank website also has warning notices on firms who are not authorised to provide such services, and more up-to-date information on scams.

You may wish to refer to the Competition and Consumer Protection, to get more information on how to choose an advisor and the types of services and investments they can provide. Doing your research first, including reading any material provided by your provider, will help you make a more informed decision.

The Central Bank does not settle individual disputes about financial services or advice. You must first make a formal complaint to your provider directly.

If you are not happy with the response and are still concerned about the financial advise you have been given, you can then make a complaint to the Financial Services and Pensions Ombudsman. (If your provider is authorised and regulated outside Ireland, you will need to complain to the relevant Ombudsman/ authority in their home country).

The Central Bank may consider taking further action and continually engages with the Financial Service and Pensions Ombudsman on such cases, where there is significant consumer risk.

The Central Bank regulates firms who provide investment advice/sell investment products and make decisions on your behalf and operate in Ireland. Cross border firms are authorised and regulated by their home country regulator.

We expect that investment firms will continue to maintain high standards in protecting you during this time. This includes taking account of the challenges you face, by showing additional flexibility and putting forward consumer-focused solutions wherever possible. We are continually engaging with firms to make sure they are identifying and mitigating all risks to clients as a result of this unprecedented situation. This includes protecting client money, where relevant.

Despite the current challenges facing firms, it is important to us that you continue to get the same levels of investor protection during this period, as required under regulations. The Central Bank is monitoring the situation closely, and is ready to take necessary action in order to protect your interests.

See also:

• Explainer - What compensation schemes protect consumers of authorised firms?

During the COVID-19 pandemic fraudsters are finding increasingly sophisticated ways to target us. They are using social media, fake websites and copying legitimate firms' details to trick us into parting with our money and personal data.

Find out how to avoid getting scammed with our explainer and infographic.

If you are unhappy with the service received from a firm which is regulated by the Central Bank, you are entitled to make a complaint with the firm concerned.

The firm must handle the complaint in accordance with the relevant complaints handling provisions of the Central Bank’s Consumer Protection Code. The Consumer Protection Code requires firms to handle complaints speedily, efficiently and fairly.

For more information read our advice on how to make a complaint about a financial services provider.

If you are not happy with the response you receive from the firm, you are entitled to escalate your complaint to the Financial Services and Pensions Ombudsman (FSPO), who has the statutory powers to investigate complaints against financial services providers.

Please be aware that the FSPO will only consider a case once the internal complaints procedure within the firm concerned has been followed.

See also

• How do I complain about a financial services firm?