Loan deferrals

[Theoneandonly]

Got an email from AIB today as my deferral period was coming to an end for a home improvement loan
The original end date for the load was next February and back in May AIB only offered to keep the same end date, so the deferred payments were divided equally into the remaining months, as there weren't many months left,  this was going to be a fairly substantial increase starting next month.
The Email led me to an online document which offered me the opportunity

1- To extend deferral for another 3 months, keeping the same end date at double the repayment, I expected this and was never going to go for it.
2- To extend deferral for another 3 months and extend the end date by 3 months with a slightly higher repayment ... happy days!
3- To extend deferral for another 3 months and extend the end date by 6 months with a slightly lower repayment ... tempting but no thanks
4- to start repaying next month at the higher rate offered originally, Nah

I do wonder will these derferrals affect new loan approvals, they say no but  ....

[mercenary for hire]

I'd be more concerned about the COVID payments.As mentioned on here before up until recently loan approvals have been withdrawn from applicants who are in jobs taking government top-ups.

By accepting the COVID money you are kinda admitting yer business isn't pandemic proof.

[Rat Catcher]

If it's at mortgage rates c.3% option 3 would probably make most sense.

[silverbullet]

Got an email from AIB today as my deferral period was coming to an end for a home improvement loan
The original end date for the load was next February and back in May AIB only offered to keep the same end date, so the deferred payments were divided equally into the remaining months, as there weren't many months left,  this was going to be a fairly substantial increase starting next month.
The Email led me to an online document which offered me the opportunity

1- To extend deferral for another 3 months, keeping the same end date at double the repayment, I expected this and was never going to go for it.
2- To extend deferral for another 3 months and extend the end date by 3 months with a slightly higher repayment ... happy days!
3- To extend deferral for another 3 months and extend the end date by 6 months with a slightly lower repayment ... tempting but no thanks
4- to start repaying next month at the higher rate offered originally, Nah

I do wonder will these derferrals affect new loan approvals, they say no but  ....

https://www.citizensinformation.ie/en/money_and_tax/personal_finance/loans_and_credit/your_finances_and_covid19.html

[Theoneandonly]

Got an email from AIB today as my deferral period was coming to an end for a home improvement loan
The original end date for the load was next February and back in May AIB only offered to keep the same end date, so the deferred payments were divided equally into the remaining months, as there weren't many months left,  this was going to be a fairly substantial increase starting next month.
The Email led me to an online document which offered me the opportunity

1- To extend deferral for another 3 months, keeping the same end date at double the repayment, I expected this and was never going to go for it.
2- To extend deferral for another 3 months and extend the end date by 3 months with a slightly higher repayment ... happy days!
3- To extend deferral for another 3 months and extend the end date by 6 months with a slightly lower repayment ... tempting but no thanks
4- to start repaying next month at the higher rate offered originally, Nah

I do wonder will these derferrals affect new loan approvals, they say no but  ....

https://www.citizensinformation.ie/en/money_and_tax/personal_finance/loans_and_credit/your_finances_and_covid19.html

Ok, so the outstanding balance is recorded on your credit record each month, (remains the same) therefore any financier looking at it can tell you availed of the deferral, what they decide to do with that information is anyones guess

[Pugwat]

Got an email from AIB today as my deferral period was coming to an end for a home improvement loan
The original end date for the load was next February and back in May AIB only offered to keep the same end date, so the deferred payments were divided equally into the remaining months, as there weren't many months left,  this was going to be a fairly substantial increase starting next month.
The Email led me to an online document which offered me the opportunity

1- To extend deferral for another 3 months, keeping the same end date at double the repayment, I expected this and was never going to go for it.
2- To extend deferral for another 3 months and extend the end date by 3 months with a slightly higher repayment ... happy days!
3- To extend deferral for another 3 months and extend the end date by 6 months with a slightly lower repayment ... tempting but no thanks
4- to start repaying next month at the higher rate offered originally, Nah

I do wonder will these derferrals affect new loan approvals, they say no but  ....

https://www.citizensinformation.ie/en/money_and_tax/personal_finance/loans_and_credit/your_finances_and_covid19.html

Ok, so the outstanding balance is recorded on your credit record each month, (remains the same) therefore any financier looking at it can tell you availed of the deferral, what they decide to do with that information is anyones guess

What is recorded on your credit rating is the number of payments overdue (0 if none)  and the amount outstanding on the day of the request. The bank would have to apply for a number of ratings to see the balance had not changed and they cannot do that.

[Theoneandonly]

Got an email from AIB today as my deferral period was coming to an end for a home improvement loan
The original end date for the load was next February and back in May AIB only offered to keep the same end date, so the deferred payments were divided equally into the remaining months, as there weren't many months left,  this was going to be a fairly substantial increase starting next month.
The Email led me to an online document which offered me the opportunity

1- To extend deferral for another 3 months, keeping the same end date at double the repayment, I expected this and was never going to go for it.
2- To extend deferral for another 3 months and extend the end date by 3 months with a slightly higher repayment ... happy days!
3- To extend deferral for another 3 months and extend the end date by 6 months with a slightly lower repayment ... tempting but no thanks
4- to start repaying next month at the higher rate offered originally, Nah

I do wonder will these derferrals affect new loan approvals, they say no but  ....

https://www.citizensinformation.ie/en/money_and_tax/personal_finance/loans_and_credit/your_finances_and_covid19.html

Ok, so the outstanding balance is recorded on your credit record each month, (remains the same) therefore any financier looking at it can tell you availed of the deferral, what they decide to do with that information is anyones guess

What is recorded on your credit rating is the number of payments overdue (0 if none)  and the amount outstanding on the day of the request. The bank would have to apply for a number of ratings to see the balance had not changed and they cannot do that.

https://www.centralbank.ie/consumer-hub/covid-19/faq-for-consumers

The Central Credit Register produces credit reports for lenders and borrowers. Importantly, it does not produce a credit score or a credit rating; it simply records the information that is submitted by lenders. It is factual, impartial information. The onus is on the lender at all times to ensure that the information reported to the Central Credit Register correctly reflects arrangements agreed with you.

Every month lenders submit personal and credit information on loans over €500 to the Central Credit Register. The Central Credit Register matches this information to create credit reports for lenders and borrowers.

When a lender agrees a payment break with a borrower, the lender should not report this to the Central Credit Register as payments being "missed" or "past due" or the loan as being "restructured", during the period of the payment break.

Example

If a lender agrees with a borrower to a payment break with no payments at all for a period of three months, starting in April. The lender will not report this as "missed payments" or a "restructure" event to the Central Credit Register for April, May and June.

If payments were being made, the amount recorded as the "Outstanding Balance" would normally decrease during those months. However as no payments are being made during the payment break period, the "Outstanding Balance" recorded will not decrease. The "Outstanding Balance" information is contained in the credit report.


Not sure why the Central bank would mention it if the enquiring bank cannot see it?

[Pugwat]

They can see the outstanding balance on the day the report is sought.  Unless of course it has changed.