Coronavirus - we're here to help
From how to access your account online, scam awareness, your wellbeing and our community we're here to help.

Skip to main content
  • rainbow over text: 'thank you NHS'
  • Register
  • Help
  • Contact us
  • Log out of your HL account

UK mortgage payment holiday extended by three months

It was due to expire at the end of June.

Article originally published by The Guardian. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

The government has extended its mortgage payment holiday scheme by three months and the ban on home repossessions until the end of October.

More than 1.8 million homeowners have taken a three-month mortgage holiday since the scheme was announced in March to help borrowers in financial difficulty because of the coronavirus crisis, according to Treasury figures. It was due to expire at the end of June.

“We’re doing everything we can to help people with their finances at this difficult time and that includes making sure people get the support they need with their mortgages,” said John Glen, the economic secretary to the Treasury. “That’s why we’re working with the banks and lenders to extend payment holidays if people need them.”

The government said that while homeowners who have taken a mortgage holiday should restart marking payments if they can, it is extending the scheme to help those still struggling with the impact of the coronavirus.

“Everyone’s circumstances will be different, so when homeowners can pay some or all of their mortgage, they should work with their lender on a plan,” Glen said. “But if they are still struggling, I want them to know that help is there.”

The Financial Conduct Authority has published draft guidelines for lenders to follow that set out options to be offered to borrowers. These include resuming full monthly payments, making reduced payments, temporarily switching to an interest-only mortgage or extending their mortgage payment holiday.

“Our expectations are clear, anyone who continues to need help should get help from their lender,” said Christopher Woolard, the interim chief executive at the FCA. “Where consumers can afford to restart mortgage payments it is in their best interests to do so. We expect firms to work with customers on the best options available for them, paying particular attention to the needs of their vulnerable customers.”

Lenders will also be expected to extend the application period for a mortgage holiday until 31 October, so customers who have not yet had a payment holiday and are experiencing financial difficulty will be able to request one.

The Treasury also announced on Friday that it was extending its ban on home repossessions to 31 October.

The extension of the mortgage payment holiday scheme follows the chancellor Rishi Sunak’s announcement last week that he was extending the furlough scheme, where the government pays 80% of an employee’s wages up to £2,500, which is supporting 9 million workers on behalf of struggling firms.


This article was written by Mark Sweney from The Guardian and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.

Article originally published by The Guardian. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

Free news email alerts

  • Daily and weekly news
  • Major Publishers
Register