At the beginning of the lockdown, borrowers who had been severely impacted by coronavirus had the opportunity to defer their mortgage payments. This was introduced as a new package to help out lenders in the current pandemic. It was due to end on Saturday 31st October. During this period interest was still accruing, however it was introduced as a part of the new financial support measures that it will be extended for a further six months.
The extension will not affect credit files or histories, which serves as good news for lenders as studies showed borrowers were still facing extreme difficult in repaying full mortgage amounts. They are now encouraged to speak to lenders about a tailored support plan.
The FCA has stated that lenders who have already claimed the six-month mortgage holiday and wishes to continue must negotiate a alternative form of tailored support. Many have praised the regulator for taking action to help people suffering from financial difficulties.
Speak to your lender for more additional support and formulate a plan if you are in debt.