Mortgage holiday to be extended another 6 months

Mortgage payment holidays are being extended for homeowners financially affected by the pandemic.

The scheme had been due to come to an end on Saturday.

Borrowers who have not yet had a mortgage holiday can request from their lender a pause in repayments, that can last up to six months.

Those who have had their payments deferred already, can extend their mortgage holiday until they reach the six-month limit.

During this period interest will still accrue on what borrowers owe.

The changes form part of a new package of financial support measures announced by the government as England heads into a second coronavirus lockdown on Thursday.

Last week, a study by the Joseph Rowntree Foundation found that 1.6 million households – or a fifth of all British mortgage-holders – were worried about paying their mortgage over the next three months.

Borrowers who have already reached the maximum six-month mortgage holiday and are still facing difficulty making repayments, are being advised by the FCA to speak to their lender about a tailored support plan.