It has now been over a week since the Government announced that mortgage lenders are to offer a three month mortgage payment holiday to those struggling to pay their mortgage due to the current COVID-19 crisis.
The Financial Conduct Authority (FCA) have subsequently published guidance for mortgage lenders to clarify further. The guidance makes it clear that mortgage lenders should:
- Grant customers a payment holiday for an initial period of 3 months where they have experienced difficulties as a result of COVID-19 and where they wish to receive one. The guidance clarifies that there is no expectation that the lender investigates the circumstances surrounding a request for a payment holiday.
- Ensure there is no additional fee or charge (other than additional interest) as a result of the rent payment holiday.
The guidance also sets out that it applies regardless of whether a customer is in arrears and that a customer’s credit score should not be impacted.
How to apply for a holiday period on your Mortgage payments
Applying for a payment holiday in most cases involves filling out an application form and emailing it to the bank. Many lenders have a page on their website with the form to download. However, it is wise to act fast - processing times will be under increasing pressure, and phone lines are already subject to long queues in many cases.
If you would like to speak to someone further within our Residential Conveyancing team, please contact our offices on 01228 552222 or email email@example.com. Please note that both telephone and video appointments can be arranged during this period of self-isolation.