Mortgage Payment Holidays Extended until July 2021

Earlier in November, the City regulator announced proposals that would allow borrowers to access payment holidays for up to a minimum of six months. This week, the Financial Conduct Authority (FCA) has confirmed this move.

People who have standing mortgages and are struggling to pay their monthly dues to the impact of covid will get further support from the government.

Borrowers who have taken up the previous payment holidays for less than six months can top up the duration to a maximum of six months in total. Those who have yet to apply for payment holidays, with the new announcement, may ask for deferrals totalling six months.

But the FCA has also clarified that mortgage borrowers who have already claimed a payment holiday of up to six months are no longer eligible for more payment deferrals.

Still, lenders are encouraged to offer support and assistance that will best meet the borrowers' needs if they continue to struggle with on-time payments.

Borrowers are given until March 31, 2021, to claim an initial mortgage payment holiday or a further deferral of their existing payment deferral.

After March 31, borrowers will be able to extend their existing payment deferrals up to July 31 of the same year.

The new guidelines are expected to be in full effect on November 20, this Friday.

Talking to Property Wire, Eric Leenders, the managing director of personal finance at UK Finance shares:

"Lenders are continuing to provide unprecedented levels of support to help customers through the Covid-19 crisis, with over 2.6 million mortgage payment deferrals already granted.

"As the impact of the pandemic continues to be felt across the country, the banking and finance industry stands ready to deliver ongoing assistance to those in need.

"While it will always be in the long-term interest of customers who can do so to resume making payments, all lenders will be providing tailored support for anyone who is still struggling.

"There is a range of different ways to get in touch, including through online chat, social media and mobile and banking apps.

"As you will appreciate, phone lines are very busy at this time and we would encourage only those customers who are facing an immediate issue with their finances to call their provider in the first instance."