Homeowners that are still struggling to pay their mortgage due to the coronavirus will be relieved to find out that he UK government has extended the mortgage payment holiday for a further three months.
Alternatively, if you are able to pay some (but not all) of your monthly payments, this can also be arranged and lenders will contact their customers to discuss options available.
Anyone struggling to pay their mortgage due to #coronavirus will continue to get the help they need.
Those who haven't yet applied for a mortgage holiday now have until 31 October to make an application to their bank.
Read more: https://t.co/EOedV9cqDS pic.twitter.com/yeoCUUs8YY
- HM Treasury (@hmtreasury) May 22, 2020
The initial three month mortgage holiday was announced in March as part of a support package.
According to the government, more than 1.8 million mortgage payment holidays were taken up, and the first of these will be coming to an end in June.
The extension has been put in place to give worried homeowners the comfort they need if they are still in no position to pay or are able to pay in reduced amounts.
The Financial Conduct Authority (FCA) has published new draft guidance today for lenders which includes extending the application period for a mortgage holiday until 31 October so customers that have not yet had a payment holiday and are experiencing financial difficulty will be able to request one.
The current ban on repossessions of homes will be continued to the same date.
The Economic Secretary to the Treasury, John Glen said:"We're doing everything we can to help people with their finances at this difficult time, and that includes making sure people get the support they need with their mortgages.
"That's why we're working with the banks and lenders to extend payment holidays if people need them.
"Everyone's circumstances will be different, so when homeowners can pay some or all of their mortgage, they should work with their lender on a plan; but if they are still struggling, I want them to know that help is there."
Lenders are expected to contact their customers whose mortgage holiday is coming to an end.
Some may be able to resume their full monthly payments, others may be able to pay a proportion of their monthly payment, or temporarily switch to an interest only mortgage, and others will opt to extend their mortgage payment holiday.