Homeowners who have been struggling with money due to the coronavirus outbreak now have until the end of October to apply for a mortgage payment holiday.
Borrowers who are already taking a three month mortgage payment holiday will also be able to extend it for a further three months, or start making reduced payments, the Financial Conduct Authority (FCA) has confirmed.
Supporting those who need it
The three month mortgage holiday was first introduced in March, as part of an emergency package of support for homeowners and businesses.
More than 1.8 million mortgage payment holidays have been granted since it was launched, with these due to come to an end in June.
However, in an effort to provide people with certainty and security, if homeowners are still struggling and need further help, a three month extension of the payment holiday will now be available.
Those who wish to request an extension, or are yet to apply for a payment holiday, now have until 31 October to do so.
The Financial Conduct Authority has also extended the ban on home repossessions for until the same date.
Christopher Woolard, interim chief executive at the FCA, said, “Our expectations are clear – anyone who continues to need help should get help from their lender.
“We expect firms to work with customers on the best options available for them, paying particular attention to the needs of their vulnerable customers, and to provide information on where to access help and advice.
“Where consumers can afford to re-start mortgage payments, it is in their best interests to do so. But where they can’t, a range of further support will be available.”
How do I apply?
The new guidance will come into effect from 4 June and only applies to an extension on mortgage payments.
Lenders will be expected to contact customers whose mortgage holidays are coming to an end to discuss their options.
Some borrowers may be able to resume their full monthly payments, or pay a proportion of it, while others can opt to extend their payment holiday.
If you want to apply for a payment holiday, you will need to contact your bank directly to do so. Most banks provide the option to apply online, but phoning your lender will allow you to discuss the best options available to you.