You may have seen this mornings headlines where lenders are offering to give those struggling with payments a 3 month mortgage holiday. We asked the head of the mortgage team, Chris Croake, if clients should take advantage of this payment break and what it could mean for your mortgage.
“Mortgage lenders will support customers who are experiencing issues with their finances as a result of Covid-19 and the options include a payment holiday of up to three months.
Monthly mortgage payments tend to be the largest outgoing for the vast majority of households and lenders are keen to reassure homeowners that the industry is working hard to put measures in place to support them during these uncertain times.
Customers who are concerned about their current financial situation should get in touch with their lender at the earliest possible opportunity to discuss if this is a suitable option for them.
It is not entirely clear yet how this will work and it may differ between lenders, however at this time lenders seem sympathetic and some have publicly pledged that this will not affect their customers credit rating. Options could include adding any missed payments to the debt”