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Mortgage payment holidays may be granted for a year

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Written by: Shekina Tuahene
12/05/2020
The City watchdog is considering giving homeowners a 12-month break from mortgage payments by extending the holiday period, reports suggest.

This will be done to help homeowners avoid defaulting on their mortgages and having their homes repossessed, The Times reported.

In March, the regulator, the Financial Conduct Authority (FCA) said it would review the mortgage holiday package in three months and would extend them if it was appropriate.

Recent figures from UK Finance revealed over 1.2 million mortgage payment holidays had been granted since March, with 700,000 of those being granted in April.

According to guidance from the FCA, borrowers who have taken out a mortgage holiday should not have their credit score impaired and should not be treated differently from those who keep making payments.

Borrowers on payment holidays are also allowed to make product transfers during the payment break.

This story first appeared in our sister title, Mortgage Solutions. The FCA has been approached for comment.

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