UK Finance, the trade body group for banks and lenders, has announced today that lenders will still offer mortgage deals to borrowers that have taken a mortgage holiday if their fixed terms ends.
Due to the coronavirus outbreak there are 1 in 7 mortgage loans on hold and a further 700,000 payment holidays granted in April 2020.
Usually when borrowers have taken payment holidays they will not be offered a product transfer and result in repaying back the loan on a costly Standard Variable Rate (SVR) or trying to remortgage with another lender
Certain criteria must be met but the trade body said: “Customers will not require new affordability checks”.
UK Finance chief executive Stephen Jones said: “Lenders are understanding that customers finances are tight during this time, and are working hard to support homeowners and ensure eligible customers are on payment holidays”.
Some sense fronm lenders. It neither the bank's fault or the borrower that they have either been furloughed or lost their job during the coronaviris pandemic.