25th September 2020
Did you take a mortgage payment holiday?
Firstly, let’s rewind back to April 2020… The Government announced, that customers needing financial support due to COVID circumstances would have the ability to obtain a ‘mortgage payment holiday’ from their lender.
At that point, the terminology of a ‘holiday’, coupled with the launch of furlough and unemployment uncertainty made this an attractive option to borrowers.
Many borrowers took the ‘holiday’, which in fact was a deferment of payment, and a roll-up of missed monthly payments onto their existing mortgage balance. During the months to follow, many borrowers re-commenced repayment.
There will, however, be borrowers who are still taking ‘payment deferments’, and there is a very clear expectation from lenders, that payments recommence in October 2020.
A large level of mortgage payments are due on 1st of the month – the next being 1st October.
Please if this applies to you:
- Ensure your Direct Debit was not cancelled
- Ensure the money is in your account, ready for collection
- If you’re concerned about affordability, contact your lender immediately & advise them of this
- Missed or partial payments will now impact customer credit files
If you miss a mortgage payment, it will have a serious impact on your credit file and will affect further borrowing or remortgaging in future.