As the lockdown continues, UK lenders agree to extend mortgage payment holidays.
Up until now, 1.8 million borrowers have taken advantage of the opportunity to take a mortgage payment holiday. The initial period of up to 3 months was due to end on 30 June. However, as the lockdown is only now slowly beginning to ease, the Treasury put pressure on lenders to extend the payment holiday. This means that those who are in receipt of the payment holiday can extend it until 31 October. Stephen Jones, UK Finance CEO said: “Mortgage lenders are committed to providing those borrowers nearing the end of their three-month payment holiday with help and flexibility in choosing the next steps which best suit their needs.”
For those who have not yet applied, he had this to say: “For those borrowers who have not already applied for a mortgage payment holiday, the industry supports the extension of the availability of payment holidays until 31 October 2020 as this will provide much-needed breathing space for borrowers who need it.”
In addition to mortgage holidays, borrowers can also apply to have their payments reduced. This option may help them if, for instance, they are receiving a reduced wage whilst on furlough. All lenders are encouraging borrowers to keep in touch with them to explore options if they are in financial difficulty.
What about repossessions?
Lenders have also agreed on a moratorium on repossessions. This means that if borrowers are unable to pay their mortgage payments, their home can’t be repossessed. However, this suspension on repossessions also ends on 31 October. After that we might well see aggressive action by the lender community to repossess property where the mortgage hasn’t been paid.
If you are having difficulty with your mortgage and want to explore your options, please contact us. During the lockdown we’ve been helping clients with all their property needs. We understand just how difficult this can be and we’re here and ready to help.