You are here: Home - Mortgages - Remortgage - News -

Mortgage payment holiday extended by three months

0
Written by:
02/06/2020
Borrowers suffering financially as a result of coronavirus will be able to extend their mortgage payment holiday by another three months, the City watchdog has confirmed.

Homeowners who are coming to the end of a mortgage payment holiday will be able to request the support for an additional three months, the Financial Conduct Authority (FCA) has confirmed.

The extended guidance comes into force on Thursday 4 June.

Customers who are yet to apply for a payment holiday but are struggling to pay their mortgage due to the health pandemic will have until 31 October 2020 to do so.

The FCA said firms will need to communicate with customers about what happens when their payment holiday ends, and they should offer a range of options for customers to repay the missed payments, if they’re able to resume them.

It added that mortgage payment holidays will not have a negative impact on credit files, but lenders may use information from other sources to form part of their lending decisions.

The financial watchdog also confirmed that the current ban on lender repossessions of homes will remain in force until 31 October 2020.

Christopher Woolard, interim chief executive at the FCA, said: “The measures we have confirmed today will mean anyone who needs to can get help from their lender, if they are still struggling to pay their mortgage due to coronavirus.

“It is important that if a consumer can afford to re-start mortgage payments, it is in their best interests to do so. Customers should talk to their firm about the best option available for them.”

Chancellor Rishi Sunak announced on 17 March that mortgage lenders would provide customers with three months of payment holidays in a bid to support financial security amid the coronavirus pandemic.

It was reported a fortnight ago that Sunak was considering extending the scheme and on 22 May, the FCA announced plans to continue support for customers struggling to pay their mortgage due to coronavirus.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Concern for vulnerable people as shops refuse cash payments

The coronavirus outbreak has accelerated the shift towards a cashless society and vulnerable people risk being left with no way...

Close