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Covid mortgage holidays extended: how to claim in lockdown

Covid mortgage holidays extended: how to claim in lockdown
Covid mortgage holidays extended: how to claim in lockdown
Coronavirus Article Bar with counter ..
Coronavirus Article Bar with counter ..

Mortgage payment holidays have been extended by three months following Boris Johnson's new lockdown announcement on Saturday 31 October.

England entered a month-long national lockdown on Thursday 5 November in an effort to curb the rise in the number of new coronavirus cases.

City watchdog the Financial Conduct Authority said mortgage borrowers who have not yet requested a payment deferral can do so for up to six months, while those who already have a payment deferral for a period can extend their payment holiday up to six months.

Anyone that has had a mortgage holiday for six months already would not be automatically eligible for further support. Mortgage borrowers who have already had the maximum payment deferral should speak to their lender to agree “tailored support”.

This could include paying off only the interest accrued each month, or resuming payments but at a lower level than previously.

Those who can afford to pay should continue to make repayments as interest continues to accrue during a holiday period, meaning borrowers will pay back much more in the long run.

In June, almost two million homeowners had told their mortgage lender that they were unable to meet their monthly repayments, with an average of £755 being deferred each month.

A spokesman for the FCA said: “We will work with trade bodies and lenders on how to implement this as quickly as possible, and will make a further announcement on November 2.”

Those looking to take up or extend a mortgage holiday should not contact their lenders at this stage. “Lenders will provide information soon on what this means for their customers and how to apply for this support,” he said.

The FCA is also considering whether to apply a similar extension to high-cost credit.