Mortgage Payment Holidays

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Take a read of our blog for the latest on mortgage payment holidays during the Coronavirus…

When the Chancellor Rishi Sunak announced that lenders had agreed a 3-month mortgage break during the No.10 Press Conference on Tuesday afternoon, lenders had only just started to organise how they would be able to make this work.

Whilst some lenders already have systems in place, others are still to announce a formal policy let alone allow mortgage holders to actually apply for a payment holiday.

We have brought together the latest contact details for the top 20 lenders in the UK. As with everything else linked to COVID-19, this guidance may change.

Some lenders have an easy to use email or text request system, others offer only a telephone service, but nearly all lenders request that you only contact them if you will have difficulty meeting your March 2020 payment. If you have made or can make your March payment without difficulty, we advise that you wait a week or so to allow volumes to reduce.

Here are a few things to consider about Mortgage Payment Holidays:

  • It’s important to remember that a mortgage holiday is a temporary break from your mortgage payments, to help you through these uncertain times. If you don’t need it, you are better not taking a payment holiday or postponing until it really is necessary.
  • When your payments start again after the payment holiday, they will be recalculated and you may see an increase in your monthly payments, an extension of your mortgage term or a combination of both.
  • The total amount of interest you will pay over the term of the mortgage will increase.
  • Currently, most lenders will only offer 3-month payment holidays. The most appropriate time for you to take out a mortgage payment holiday will depend on your individual circumstances.
  • If you have an overpayment reserve, you could underpay your mortgage instead.
  • You will not normally be able to switch your mortgage to an alternative product or repayment method whilst on a payment holiday. If you want to switch soon, you should switch before you request a payment holiday.
  • Most lenders have confirmed that taking a payment holiday will not affect your Credit History.

View the contact details for the top 20 lenders in the UK offering mortgage payment holidays in light of COVID-19.

If you would like to discuss this subject or any other financial matter, please contact us on 01635 521 300 or email contact@jfinance.co.uk.

YOUR MORTGAGE IS SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.