Hayes says banks are up to the task of handling struggling borrowers in latest Covid-19 lockdown

the banks are up to the task of handling any difficulties facing customers from the third Covid-19 lockdown this month, says BPFI CEO

Brian Hayes, CEO of Banking and Payments Federation Ireland. File Picture: RollingNews.ie

Brian Hayes, who heads up the business group representing mainstream lenders, said the banks are up to the task of handling any difficulties facing customers from the third Covid-19 lockdown this month.

Mainstream lenders are working with so-called non-bank lenders and are continuing to devote significant efforts in handling queries from customers facing financial distress during the latest lockdown and to offer payment breaks on a case-by-case basis, the Banking and Payments Federation Ireland, or BPFI, said.  

“Specialist teams across the support units in the five retail banks and other lenders are working closely with customers on a case-by-case basis to find a supportive solution which meets their individual circumstances," said Mr Hayes, the BPFI chief executive. 

Lenders were not as yet seeing "an influx of requests" as happened during the first lockdown in March, Mr Hayes said in a statement.

Earlier this week, senior mortgage broker Michael Dowling called on the lenders to bring back the automatic payment breaks. 

Mr Dowling told the Irish Examiner that borrowers will not have the time to get the necessary documentation that is required to apply for a mortgage break on a case-by-case basis. 

On Friday, Joey Sheahan, who is head of credit at homes loan broker MyMortgages.ie, said he was "optimistic" that there will be fewer backlogs this time. 

However, he said lenders require a mortgage applicant to be back at work after a temporary lay-off before releasing funds.  for drawdown.