Taking a break from full payments or pay interest only
If you feel you need to take a break from repayments for a while, to cover maternity leave or home property improvements for example, we’ll look at that for you. You can apply for a complete break on your mortgage repayments for six months (it’s what we call a moratorium), or to pay interest only.
We may be able to give you a complete break from your mortgage for up to six months, or the option to pay interest only for 12 months. It all depends on you living in the home, having all your payments up to date with us, as well as some other information we need from you when you apply.
If we agree to it, we will then spread those rearranged repayments over the rest of your mortgage term.
If you are considering a repayment break because you are finding it hard to pay your mortgage, please visit to https://aib.ie/worried-about-payments.
Six month complete break in repayments:
If we agree to it, we will spread the six months’ worth of repayments you are taking a break from, over the rest of your mortgage term. This means that when you start paying again, your repayments will be a little higher to make sure that your mortgage will be repaid (together with interest) within its original term.
Or, if you like, you may be able to make your repayments interest-only for up to 12 months, in other words, not paying the capital part of your repayment. At the early stages of your mortgage, the interest portion of your repayment is usually higher than the capital portion.
Then after 12 months, your repayments will be a little higher to make sure that your mortgage will be repaid (together with interest) within its original term.
To apply for either of these options, fill in the Payment Break Form and return it to your Mortgage Advisor or drop it in to any of our branches.