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.