The government has announced a three-month mortgage holiday to those facing financial difficulty due to the COVID-19 outbreak.
Chancellor Rishi Sunak made the announcement as part of a government package designed to stabilise the economy during the pandemic.
‘Payment holidays’ mean that mortgage repayments are deferred for a period of time and the monthly payment changes to £0. Interest accrues for this period and the borrower will need to make up repayments in the future.
Firms are in conversation with credit agencies to ensure those who take a repayment holiday will not have their credit score impacted.
Homeowners who think they may be impacted are being encouraged to contact their lenders at the earliest possible opportunity for more information.