Covid 19 banner

Mortgage Payment Holiday Scheme Extended to October 31

  • Sharon McDougall -
  • 27th May 2020 -
  • 2 minutes to read

A scheme that has seen hundreds of thousands of UK consumers granted mortgage payment holidays has been extended for a further three months.

It has also been announced that a ban on home repossessions will remain in place until the end of October.

Roughly 1.8 million borrowers took advantage of the mortgage holiday scheme after it was initially introduced in March as a response to the impact of the COVID-19 crisis.

The initiative, which is decided upon by government and overseen by the Financial Conduct Authority (FCA), was initially introduced for a period of three months but it is clear that the coronavirus situation is far from over and huge numbers of people are still being impacted by it financially.

In its communications with lenders, the FCA has made clear that they should continue to grant mortgage holidays to anyone who needs them whether they have applied for one previously or not.

“Our expectations are clear – anyone who continues to need help should get help from their lender,” said Christopher Woolard, interim chief executive at the FCA.

“We expect firms to work with customers on the best options available for them, paying particular attention to the needs of their vulnerable customers, and to provide information on where to access help and advice.”

John Glen from the government’s Treasury team has said the extension of the mortgage holiday scheme is designed to provide support to the very many people whose incomes have been hit by coronavirus.

“We’re doing everything we can to help people with their finances at this difficult time and that includes making sure people get the support they need with their mortgages,” he said.

“Everyone’s circumstances will be different, so when homeowners can pay some or all of their mortgage, they should work with their lender on a plan,” Mr Glen said. “But if they are still struggling, I want them to know that help is there.”

Mortgage holidays allow borrowers to skip repayments they would otherwise have been obliged to make but lenders continue to charge interest on their loans while payments are not being made.

However, those interest payments are not demanded immediately and are effectively added to the total costs of a given mortgage deal.

Sharon McDougall
Sharon McDougall
Manager
About

Why Choose Us

5 Offices in Scotland
5 Offices in Scotland
National Coverage
Ask us About
Ask us About
Free Home Visits
Helping Scots Get
Helping Scots Get
Out of Debt Since 1989
We offer a
We offer a
Free Initial Consultation
We'll Help You
We'll Help You
Lower Monthly Payments
You'll Get
You'll Get
Peace of Mind

We'll give you a call

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

When should we call?
Can we leave a message?
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

Personalised Debt Report

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

Free Scheduled Call

Free Scheduled Call

 Arrange a call with an expert advisor at a time to suit you.

Find a Local Office

Find a Local Office

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

Close Menu Share with a Friend

Send this page to a friend

via Whatsapp via Messenger via Messenger via Email
Make sure you have WhatsApp installed.

Copy link to clipboard
Close
Edit this Page