Mortgage Payment Holidays
If you took out a mortgage payment holiday because of coronavirus and its now come to an end it’s a good idea to get on top of the options available to you, especially if you’ve suffered a severe income drop. Just before your payment holiday comes to an end, your lender should contact you to ask how you’re planning to make up the shortfall.
If you are still experiencing payment difficulties due to coronavirus, they might offer to extend your payment holiday by a further three months. If you can now afford to re-start your mortgage payments, you should do this as soon as you possibly can.
You should get in touch with your lender as soon as you can and well before your holiday payment period is due to end, particularly if you are not sure you will be able to make future repayments.
In most cases, once your payment holiday ends, your lender will recalculate your monthly payments and spread any deferred payments over the outstanding term of your mortgage. They may also discuss alternative ways of how you can repay if this is more suitable.
Understand the impact of payment holidays, increases to your monthly mortgage payments and how much extra you’ll pay over the course of your mortgage using this mortgage payment holiday calculator
Information sourced from the Money Advice Service