Mortgage Payment Holiday for Homeowners

Homeowners who find themselves in financial difficulty as a result of coronavirus will be able to take a mortgage payment holiday of up to three months.

How will the payment holiday work?

People who find themselves unable to meet their monthly mortgage repayments will be able to defer them for a period of up to three months. While you don’t have to pay anything towards your mortgage interest will continue to accrue and will be added to the total you owe. It is likely these missed payments will be added to the end of your mortgage term or split between your future repayments.

Who qualifies for a payment holiday? 

A payment holiday is available to homeowners who are up to date with their mortgages and are not already in arrears. If this is the case other options will be made available if you have fallen behind on your payments.

Payment holidays are also available to buy to let landlords whose tenant’s finances have been affected by coronavirus. Landlords who take these payment holidays then are expected to pass on this financial relief to their tenants.

How do you apply for the mortgage payment holiday? 

If you are up to date with your mortgage repayments, you will be able to self-certify that you need help. You simply need to contact your mortgage lender and tell them about the difficulties you are experience and won’t even be expected to prove your finances have suffered as a result of coronavirus.

Equally, if you are already experiencing financial difficulty and have missed payments on your mortgage contact your lender to discuss your options at your earliest opportunity.

Worried about your credit score?

Due to the current exceptional circumstances, it has been confirmed that credit scores will not affected by taking a payment holiday at this time.