Government Announces Repayment Holiday Extension | moneyfacts.co.uk

Derin Clark

Derin Clark

Online Reporter
Published: 22/05/2020

The Government and the Financial Conduct Authority (FCA) have announced proposals that will see the extension of mortgage repayment holidays for those financially impacted by the Coronavirus pandemic.

To help homeowners who continue to be impacted by the pandemic, the FCA has published new draft guidance for mortgage lenders that will include extending the application period for a mortgage holiday until 31 October 2020. As well as being able to extend existing payment holidays, the new guidance will also allow those who have not yet requested a payment holiday but who are experiencing financial difficulty to now be able to request one.

Commenting on today’s announcement, John Glen, the Economic Secretary to the Treasury, said: “We’re doing everything we can to help people with their finances at this difficult time, and that includes making sure people get the support they need with their mortgages. That’s why we’re working with the banks and lenders to extend payment holidays if people need them.

“Everyone’s circumstances will be different, so when homeowners can pay some or all of their mortgage, they should work with their lender on a plan; but if they are still struggling, I want them to know that help is there.”

How to request a mortgage repayment holiday extension

Lenders are being advised to contact customers who already have a mortgage repayment holiday in place to discuss their options. While homeowners who are able to make the repayments will be advised to end the payment holiday, those who are still struggling will be able to extend their repayment holidays.

Homeowners who have been meeting their mortgage payments, but who are now struggling financially due to the Coronavirus pandemic should contact their mortgage lender to discuss their options.

When considering their options homeowners should keep in mind that interest will likely continue to be added to their mortgage during their repayment holiday and once the holiday period ends it will result in having to pay higher monthly repayments or having to extend the term of their mortgage. As such, homeowners should consider all the options available to them before taking a repayment holiday.

Disclaimer

Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

woman writing in a notebook

Cookies

Moneyfacts.co.uk will, like most other websites, place cookies onto your device. This includes tracking cookies.

I accept. Read our Cookie Policy