Book a Property Valuation
Blog November 3, 2020
     

Mortgage holidays to be extended during second national lockdown

Mortgage holidays will be extended to support homeowners affected by the second national Covid-19 lockdown, it has been confirmed.

 

The scheme, which allows borrowers to pause repayments for up to six months, had been due to come to an end on Saturday.

This means that borrowers who have not yet had a mortgage holiday can request one from their provider, lasting up to six months, while those currently benefitting from a mortgage holiday would be able to apply for an extension until they reach the six-month limit.

Those who have already deferred payments for the maximum six months should “speak to their lender to agree tailored support,” said the FCA.

According to a recent study, approximately one in five British mortgage holders – equal to around 1.6 million households – were worried about paying their mortgage over the next three months.

Commenting on the second nationwide lockdown, the Financial Conduct Authority (FCA) said it will begin to “propose updates to temporary guidance on personal loans, credit cards, motor finance, rent to own, buy-now pay-later, pawnbroking and high-cost short-term credit to support consumer credit customers financially affected by coronavirus”.

The regulator added: “It is important that consumer credit customers who can afford to do so continue to make repayments. Borrowers should only take up this support if they need it.”

The update comes as the Housing Minister Robert Jenrick confirmed that the property market will remain open during the second national lockdown, meaning you can continue to market your property and move home.

For more advice on buying, selling or renting a property, please get in touch with our expert team today.

Leaseholders to be given right to extend lease by 990 years and scrap ground rent, Government announces

Property market to remain open in Lockdown 3.0, Government confirms

Average house value rockets by £13,000 since introduction of Stamp Duty holiday

Bank of England to review restrictive mortgage lending rules for young people as overall approvals reach highest level since 2008