Calls to extend mortgage breaks as thousands remain out of work

Sinn Féin Finance spokesperson Pearse Doherty TD is urging the government to extend the mortgage breaks. Picture: Gareth Chaney/Collins

Calls have been made to further extend mortgage breaks for tens of thousands of homeowners who have been severely hit by the Covid-19 pandemic.

Finance Minister Paschal Donohoe is due to meet the heads of main banks today as mortgage breaks provided by lenders are due to come to an end on Wednesday.

Pearse Doherty, Sinn Féin finance spokesperson, said we are not yet back to normal times and many people who are still out of work need extra support.

"The problem is that we are still in a unique scenario. We still have over 200,000 people who are out of work, who are on the Pandemic Unemployment Payment," he said.

Mr Doherty said around 80,000 people and availed of the three month mortgage break when the pandemic first hit. 

Of those, 37,000 mortgage holders opted to extend the break for a further three months. This comes to an end this week.

Mr Doherty said many of these people are still out of employment and are not in a position to resume mortgage payments.

"If you have been cut to the bone and if you're relying on the Pandemic Unemployment Payment to put your children to school, to get your food on the table at the weekend, to deal with all of the other bills, then you need a reprieve for the bank.

"We need to use the flexibilities of the European banking authority and allow for an extension, it has been done in Spain, Italy, Portugal, Germany," he told Newstalk Breakfast.