Bankers are closing the Covid mortgage breaks scheme on Wednesday, September 30.
After that, the banks say they will deal with everybody on a case-by-case basis.
This will come as a major shock to the tens of thousands of homeowners who will face a winter of mortgage repayments with less money or no job.
The news came on the same afternoon as the Minister for Housing, Darragh O’Brien, announced an extension of the payment breaks scheme for those in council housing.
The chiefs of the five big banks were brought before the Tánaiste, Leo Varadkar, Minister for Finance, Paschal Donohoe and Minister for Public Expenditure, Michael McGrath.
It was hoped that the bankers would be made extend the scheme, but instead it appears the Government has given its blessing to the banks deciding to end the scheme formally.
Leo Varadkar said: “The recession caused by the pandemic is like no other. Nobody is to blame for being unable to pay because their job is gone or business is closed.
"It’s in everyone’s interest that people and firms are given more time to get back on their feet.
"We want to make sure that Covid results in a lost year of economic activity not a lost a decade and that means forbearance and loan restructuring where appropriate.
“For this reason the banks must continue to offer payment breaks to individuals and business that still need them.
"Following on from today, the banks agreed that this would be done on a case by case basis with other options also being made available; reduced payments and interest-only, for example.
"Anyone who is struggling should contact their bank and we expect that arrangements will be made based on each individual’s circumstances.
"Banks must be understanding of people’s needs at this really difficult time and cognisant of the extraordinary year 2020 has been.
“There is no cliff-edge coming on September 30th. This is merely the last day on which people and firms can apply for a Covid-related payment break if they don’t have one already.”
