It has been around four months since the availability of a three month mortgage payment holiday was first announced.

This has led to two million homeowners taking mortgage holidays, with one in six mortgage customers making use of the Government’s relief scheme for payments during the pandemic.

More recently the Government (via the Treasury and FCA), issued guidance that would allow consumers to be able to enter into a mortgage repayment holiday arrangement with their lender up until 31st October 2020; meaning that those who have not yet had a repayment holiday and who are experiencing financial difficulty, will be able to request one.

But what about those who are already making use of a repayment holiday? That very much depends on your personal circumstances.

If you haven’t taken a mortgage payment holiday and would like to:

Taking a mortgage payment holiday means:

•    Your credit score won’t be affected, neither will your future ability to get a mortgage;

•    You will be able to miss three payments;

•    You must make up the payments within the fixed or repayment term – this can be done by overpaying on your regular payment;

•    You must be up to date with your normal payments;

•    All parties to the mortgage must agree.

We’re on hand to help and can offer advice on the next steps to take.

Are you ready to exit your mortgage payment holiday or are coming to the end of your holiday

If you’re coming to the end of your payment holiday, you may be applicable to apply for an extension. Your mortgage lender will work with you to find out what you can afford and may be able to reduce your repayments for a further 3 months.

However, if you are able to afford re-starting mortgage payments, it is in your best interests to do so as interest will build during that period and you will need to pay back more later on.

Your monthly repayments after the payment holiday may also be higher, or your mortgage may take longer to repay.