Deadline approaching for mortgage payment holiday applications

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Homeowners looking for a deferred mortgage payment have just one week left to apply.

The deadline for the scheme – which has provided financial breathing space for many during the Covid-19 pandemic – is Wednesday, March 31.

Mortgage payment holidays can last up to a maximum of six months.

This means if you’ve already had a holiday that only lasted for three, for example, you may be able to get a further three-month deferral.

If you’ve already reached the six-month limit but are still struggling to pay, speak with your lender as they should be able to offer you tailored support.

All mortgage payment holidays are set to end on Saturday, July 31 2021 .

UK Finance, the industry’s trade association, says 2.75 million deferrals were granted up until the end of 2020, with a peak of 1.8 million in place in June 2020.

By the end of February 2021, slightly more than 100,000 mortgage payment deferrals were still in place.

For more information about the different options available to you, visit your lender’s website.

Director of mortgages at UK Finance, Charles Roe, said: “The current mortgage payment deferral scheme will come to an end on July 31, and final applications should be made by March 31.

“It will always be in the long-term interest of borrowers to resume making payments if they are able to do so, but for anyone who is still struggling financially, ongoing support will be available.

“Customers who have already benefited from a full six-month payment deferral, but are continuing to experience financial difficulty, should contact their lender early to discuss available ongoing support options.”

In the longer term, Halifax says some homeowners may want to consider making overpayments to get their balance back on track.

It added that, if people are struggling with their outgoings, an option to consider would be reducing the size of monthly payments by extending their mortgage term.

Importantly, don’t simply cancel your payments without agreeing with your lender first – this would count as a missed payment, not a holiday.

You will still owe the money when a payment holiday has been granted and interest will normally still accrue.



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