For all Mortgage Payment Holidays, we would suggest speaking to your mortgage adviser and not just assume automatically to take a holiday if the situation is not pressing. Lenders will be overloaded with calls and should be free to deal with the most urgent first.
We will help you with your questions and see if there are any other options available to you.
For a customer, up to date with payments, not in arrears and impacted by COVID-19:
- the customer would contact the lender and inform them that they are impacted by COVID-19
- the lender will accept details from the customer and offer an automatic 3-month mortgage payment holiday
- no evidence will be sought from the customer
- the lender makes the customer aware that interest will accrue and will be contacted at the end of the three months to complete an assessment of the customer’s circumstances
- at the end of three months, an arrangement to pay will be agreed with the customer according to their circumstances to recover any shortfall, while ensuring that the mortgage remains affordable and sustainable
- the lender lets the customer know that if they wished to complete a full assessment now, there may be other forbearance options more suitable to the customer.
England has cut the base rate.