If your income is affected by coronavirus and you are worried about paying your mortgage, speak to your lender as soon as possible.
Mortgage lenders are allowing borrowers to apply for a ‘payment holiday’ of up to 6 months during the pandemic. During this period you do not have to make any payments to your mortgage but be aware that your monthly payment will go up after the holiday ends. The deadline for applying for a payment holiday has been extended to the 31 March 2021. Think carefully before you apply and use the Money Advice Service payment holiday calculator and guide to help you decide if a payment holiday is right for you.
If you have taken payment holidays of less than 6 months, you have until 31 March 2021 to apply for another payment holiday. After 31 March 2021, you can extend an existing payment holiday up until the 31 July 2021, as long as:
- it doesn’t go over the 6-month payment holiday limit
- there are no breaks in the support.
You won’t be eligible to apply if you’ve already had payment holidays of 6 months overall.
If you have already had a mortgage payment holiday due to coronavirus, your lender should be in touch with you to talk about how you can start up payments again. Lenders are being encouraged to treat their customers fairly. Click here for some payment ideas that you can talk through with your lender.
Many lenders have also announced extra help for borrowers including :
- not adding fees for late payments
- switching to a lower interest rate.
Click here to find out what support your lender is giving.
Check if you have insurance that will cover your mortgage payments instead. For example, mortgage payment protection insurance or through your bank account.