Mortgage Payment Holiday scheme extended
26 May 2020
The original payment holiday scheme was due to run out at the end of June, but has now been re-scheduled to finish at the end of October, although the FCA says home owners should return to paying their mortgages where possible. The FCA is to consult with lenders until 26th May on the proposals and then introduce the extended scheme.
As Coronavirus has ravaged the economy, the mortgage holiday scheme has proved popular and some 1.8 million homeowners have taken it up, but the FCA is worried that these borrowers will then face a ‘cliff edge’ once the relief ends.
Landlords also have the opportunity to take up a similar three month mortgage holiday if their tenants are suffering financial hardship and can't pay their rent.
There were comments by the Chancellor Rishi Sunak in recent days that the UK faces an unprecedented recession once the economy starts up again, and the ongoing social distancing rules will keep many leisure and food businesses closed. This means that mortgage holders will need longer to get back on their financial feet.
Christopher Woolard, Interim Chief Executive at the FCA, has said: ‘Our expectations are clear – anyone who continues to need help should get help from their lender. Where consumers can afford to re-start mortgage payments, it is in their best interests to do so.”
Please get in touch with us if you would like to discuss your mortgage options. Is taking a mortgage payment holiday the right decision for you and your family? Should you now resume making your mortgage payments? We can help you assess your situation and make an informed judgement.
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