MORTGAGE PAYMENT HOLIDAYS TO BE EXTENDED
According to reports in today’s press, Chancellor Rishi Sunak has recommended the extension of mortgage payment holidays.
Debbie Boyes, Director of Willowlace Ltd says “According to the Guardian, more than 1.8 million mortgage payment holidays have already been taken up. However, the first of these are due to come to an end in June and there has been a call for these payment holidays to be extended.”
Under proposals from the Financial Conduct Authority (FCA), Mortgage Borrowers may be able to extend this by another 3 month, along with putting in a ban on homes being repossessed until 31st October 2020.
Christopher Woolard, Interim Chief Executive at the FCA, said: ‘Our expectations are clear – anyone who continues to need help should get help from their lender. We expect firms to work with customers on the best options available for them, paying particular attention to the needs of their vulnerable customers, and to provide information on where to access help and advice.” He continued “Where consumers can afford to restart mortgage payments, it is in their best interests to do so. But where they can’t, a range of further support will be available. People who are struggling and have not had a payment holiday will continue to be able to apply until October 31.”
“We applaud the FCA in supporting Borrowers who are struggling in these extraordinary times,” Debbie continues, “However, Borrowers need to remember that the mortgage interest still builds up during a payment holiday and the outstanding debt will still be owed – and we still do not know the full impact of taking these holidays in the medium to long term. We recommend that Borrowers explore other options, for example, extending their mortgage term to reduce their monthly payment, but in all cases Borrowers should liaise direct with their Lender before changing their monthly payments.”
Photo: Chris McAndrew / CC BY (https://creativecommons.org/licenses/by/3.0)