Back to all news

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.


Ready to take the next step?


Ask us to call you

Speak to an advisor

Make an appointment