How to Apply for Mortgage Holiday During Coronavirus Lockdown
Published / Last Updated on 15/04/2020
The FCA has instructed mortgage lenders to allow a mortgage payments holiday for up to three months during the coronavirus lockdown. This should help people who are struggling with their finances.
The reality:
You should not already be in mortgage arrears to apply.
You should know that these are arrears when on a mortgage holiday, you will need to pay them back.
The coronavirus mortgage holiday period will not affect your credit rating.
You must have a valid reason for asking for a mortgage holiday as some lenders will want to know why.
We suggest you pay as much as you can. If you are on 80% pay and in furlough, try and pay your mortgage in full.
If you cannot afford this pay as much as you can, even if it is just the interest on your mortgage to stop your debt building up.
If you have lost your job, you should get in contact with the benefits agency as soon as possible.
Many mortgage lenders have limited, if any, telephone answering services.
Most mortgage lenders have offered coronavirus lockdown guidance and have an online mortgage holiday application form.
Do not cancel your direct debit as this may then affect your credit rating if the lender has not yet stopped mortgage payments or not approved your mortgage holiday yet.
