The mortgage payment holiday scheme is set to run for a further six months, the Financial Conduct Authority (FCA) has announced. The scheme allows borrowers to defer their mortgage payments if their income has been affected by the pandemic.
Borrowers can continue to defer payments if they have already been doing so, and continue their ‘mortgage holiday’ for a maximum of 6 months. People who are struggling now can apply to their lender to defer payments for a maximum of six months.
It is important to know that although you won’t have to make the payments now, you do still owe that money, and the lender will charge interest on the payments accruing.
If you are concerned about your mortgage payments, McRobieAdams strongly advise that you speak to your lender as soon as you can. Many lenders will be able to talk to you about a tailored support plan to help you through this difficult time.
If you are planning to move, please do speak to one of our Advisers before you consider taking a Mortgage Payment Holiday, as lenders do take this into account when considering a new loan.
The intention of the scheme is to support people through what is a temporary situation. There is every likelihood of a bounce-back in the economy once we are allowed to return to more normal activities.
For more information or advice on mortgages or mortgage payment holidays, call McRobieAdams on 0333 320 8300