COVID-19: Mortgage Payment Holidays ending 31st October
The Financial Conduct Authority (FCA) has stated that COVID mortgage payment holidays in the UK will not extend past the 31 October 2020 and any financial support past that point will be marked on credit files.
The FCA has emphasised that both a payment holiday and partial payment holiday are temporary, and the outstanding amount will need to be paid back at a later date. Interest will also continue to build during this time and repayments may be higher after the payment holiday according to the FCA.
Mortgage payment holidays have proved a vital lifeline for existing homeowners who have financially suffered during the COVID-19 pandemic. However, if you did take a mortgage payment holiday, please ensure:
- Your direct debit was not cancelled.
- There are sufficient funds in your account ready for collection.
- If you are concerned about affordability, contact your lender immediately.
It is important to know that if you need financial support from your lender after 31st October, it will be marked on your credit file. Homeowners should only utilise the mortgage payment holiday if it is necessary.
For existing homeowners, now could also be a good time to think about remortgaging. Guidance from UK Finance states that homeowners remortgaging with the same lender (known as a product transfer) will be able to do so even if they have a payment holiday in place. Existing customers who have been furloughed will also be eligible for product transfers.
Speak to an expert mortgage adviser today – call 01224 316 200 or fill in our online enquiry form.
