Check If You Qualify

Mortgage Payment Holiday Offers Extended by 3 Months

Sharon McDougall - 3rd June 2020 - 2 minutes to read

Banks and other lenders have been told to continue offering full or partial payment holidays to mortgage borrowers who have been hit by the coronavirus crisis.

The Financial Conduct Authority (FCA), which fundamentally decides what happens across the UK’s financial services sectors, has said mortgage holidays should continue being offered until the end of October.

Those offers will now be available to people who have already requested mortgage holidays and to those who decide they need to do so any time up to October 31st.

“The measures we have confirmed today will mean anyone who needs to can get help from their lender, if they are still struggling to pay their mortgage due to coronavirus,” said the FCA’s interim chief executive Christopher Woolard.

However, the FCA have been keen to stress to borrowers that they should only make use of mortgage holidays if they really need to and they should make their normal repayments if they possibly can.

“It is important that if a consumer can afford to re-start mortgage payments, it is in their best interests to do so,” Mr Woolard said.

Lenders have been told that they cannot carry out any home repossessions until at least the end of October, partly so that people can self-isolate if they need to in the context of the coronavirus outbreak and the public health crisis associated with it. 

The FCA says that payment holidays taken in the current situation will not have any negative impact on a borrower’s credit rating.

However, as the Citizens Advice Scotland (CAS) charity has pointed out, anyone taking mortgage holidays will ultimately be charged more by their lenders because they will still need to pay interest on their loans while their ‘holiday’ is taken.

“This updated guidance from the FCA is welcome news in the short term for people who are struggling to make mortgage payments as a result of coronavirus,” said Myles Fitt, a financial health spokesperson with the CAS.

“But it’s important to remember that interest on mortgages is still building up when you take a payment holiday and the missed payments have to be paid back.”

If you live anywhere in Scotland and you’re worried about your personal debts then Scotland Debt Solutions can help. Contact us directly to arrange a FREE and confidential consultation.

facebook colour icon linkedin colour icon messenger colour icon whatsapp colour icon email colour icon
Sharon McDougall Square

Sharon McDougall

Manager

Other News

Debt Levels Soaring across Scotland, New Figures Show Debt Level Rising

Debt Levels Soaring across Scotland, New Figures Show

Levels of unsecured debt in Scotland increased dramatically during 2022 as the cost of living crisis took its toll on household finances.

Nearly Half a Million Scots Facing ‘Profound Financial Hardship’ Financial Hardship

Nearly Half a Million Scots Facing ‘Profound Financial Hardship’

Close to half a million Scots are in a position of profound financial hardship, according to a new set of figures.

Scots with Disabilities Urged to Check Eligibility for New Benefits Scottish Man In Wheelchair

Scots with Disabilities Urged to Check Eligibility for New Benefits

Disabled people in Scotland are being urged by the government to check whether they might be eligible for benefits that could help make their life a little easier.

About

Why Choose Us

Usp Location

5 Offices in Scotland

National Coverage

Usp House

Ask us About

Home Visits

Usp Hand Heart

Helping Scots Get

Out of Debt Since 1989

Usp Handshake

We offer an

Instant Initial Consultation

Usp Palm Wallet

We'll Help You

Lower Monthly Payments

Usp Hand Heart

HELPING SCOTS GET

Out of Debt Since 1989

We'll give you a call

Our Scottish based team can help advise you on your debt problems.

Here at Scotland Debt Solutions we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See our Privacy Policy.

Tools

Useful tools

Personalised Debt Report
Usp Planner

Personalised Debt Report

Our personalised debt report will help you better understand your financial position and see where your money is going.

Debt Report
Instant Scheduled Call & WhatsApp
Headset

Instant Scheduled Call & WhatsApp

Arrange a call with an expert advisor at a time to suit you or contact our team via WhatsApp for immediate help and advice.

Arrange Callback
Find a Local Office
Usp Signpost

Find a Local Office

We have five offices located across Scotland. Find your nearest one here.

Find an Office

Our Insolvency Practitioners are regulated by ICAS or the IPA and our firm is authorised and regulated by the Financial Conduct Authority

Fees and Information: There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.

ICAS Insolvency Practitioners