Mortgage Payment ‘Holidays’ extended

Homeowners struggling financially due to coronavirus will be able to extend their mortgage payment holiday for a further three months, or cut payments.

Mortgage holidays started in March, allowing people to defer payments without affecting their credit rating.

That respite from payments would end for the first applicants in June and the Treasury said the extension would provide certainty for those affected.

However, it said borrowers should still pay their mortgages if they were able.

The deferred payments will still have to be paid back later on, so mortgage customers will face higher bills once the so-called holiday comes to an end.

However, the Treasury was concerned an abrupt end to the scheme could produce a cliff-edge effect, with families facing money problems as bad, if not worse, as they did when the virus struck.

BBC Business News