‘We’re told we are all in it together... that rings hollow’
Sinn Fein yesterday published legislation that will prohibit the charging or accrual of interest for those taking break
A BILL to ban banks from charging homeowners interest on Covid mortgage relief has been published by Sinn Fein.
Up to 80,000 mortgage holders have been forced to avail of the payment break due to an unprecedented loss of income.
But homeowners will still be charged interest on it at the end of their term.
Sinn Fein published the Mortgage Moratorium and Suspension of Interest Bill 2020, which would prohibit the charging or accrual of interest by banks on mortgage holders who have availed of a payment break due to loss of income as a result of Covid-19.
Here Sinn Fein Finance spokesman Pearse Doherty explains why.
THE Covid-19 crisis has left people across this State struggling to keep their heads above water.
All corners of society needed – and in many cases continue to need – a lifebuoy as we look to pull ourselves out of these choppy waters.
In the eye of a storm, swift action was required when we put the economy into hibernation to contain the spread of Covid-19.
And on March 18, the Government together with the banks announced measures to give relief to customers and mortgage holders.
They could apply for a threemonth break on repayments and are now able to apply for a threemonth extension.
By May 28, close to 80,000 had applied for a payment break.
While that affords some relief in the short-term, they face being saddled with extra debt at the other end of this crisis.
As it stands, they will be charged interest for the period of the break, with higher repayments and higher debts once it ends.
A borrower who lost their job through no fault of their own will face thousands of euro of interest.
Suppose you are a Bank of Ireland customer with 30 years and €200,000 left on your mortgage. By applying for a six-month payment break you will be hit with a charge of more than €2,500.
What a sickening blow to people still counting the cost of bailing the banks out a decade on
We are told we are all in this together but such grandiose statements of solidarity from the Taoiseach ring hollow.
They simply do not cut it when mortgage-holders are being hit with additional charges to support the profits of the banks.
We have been in contact with countless families who will be heaped with additional debt.
We’ve raised this issue in the Dail, with the banks and the Central Bank.
At every turn, the Government refuses to act, citing European Banking
Authority Guidelines. Their excuse for inaction doesn’t stand up to scrutiny.
While Fine Gael accepted a voluntary arrangement with the banks that will heap additional debt on families, countries across the EU introduced legislation to ensure the cost was borne by the banks, not borrowers.
Sinn Fein yesterday published legislation that will prohibit the charging or accrual of interest for borrowers who take a Covid-19 payment break.
Under the legislation, any mortgage-holder granted a payment break for a period of up to six months will no longer have interest charged – and their credit rating will not be affected.
For those who have taken a payment break already, no interest will be charged on the extension they apply for.
Sinn Fein submitted this legislation to the Department of Finance yesterday and we urge the government to act now to give families a break.