What happens when your mortgage payment holiday ends?

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New guidance has been issued to lenders about how they should support borrowers coming to the end of their agreed pause in payments.

The Financial Conduct Authority (FCA) has said mortgage borrowers will still receive help from lenders if they continue to face payment difficulties due to coronavirus.

The regulator wants to make sure that you will continue to get the support you need if you still face financial difficulties at the end of your payment holiday.

Under current guidance, payment holidays are set to end on 31st October 2020.

What does the new guidance say?

Lenders will be expected to offer further short and longer-term support, reflecting the circumstances of their customers. This could include:

  • Extending your repayment term
  • Restructuring the mortgage
  • Reducing your repayments
  • Offering a further pause in repayments

Mortgage firms will be expected to prioritise support for borrowers who are at most risk of harm, or who face the greatest financial difficulties. And the FCA said it will monitor lenders to ensure borrowers are being treated fairly.

It is essential that customers speak with their lender to discuss the best solution for them.

Does further support affect your credit file?

After 31st October, your credit file will now show if you have taken, or are taking, payment deferrals or further support from lenders. This also applies to borrowers newly affected by coronavirus who receive support from their lender after 31st October.

How can Choicemortgages help?

We encourage those clients who can afford to resume mortgage payments to do so for their own financial benefit. However, we also understand that some clients will continue to be affected by coronavirus in the coming months or be impacted for the first time. 

We have a team of experienced advisors who can provide tailored advice and support. If you would like to review your options please contact us on 01780 480600.

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Choice Mortgages have provided me with a fantastic consultative service for over 10 years. I've had absolute peace of mind that everything related to my mortgage, home insurance, life insurance and critical illness insurance has been in hand. Nicki and the team have always given me informed guidance and I've had every confidence in their recommendations and products. A first-class service that I wouldn't hesitate to recommend.

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