Due to the coronavirus causing a global health and financial crisis, mortgage lenders are offering a coronavirus mortgage payment holiday.
Here are some common questions to help you understand how the mortgage payment holiday can help you during this time.
What is a mortgage payment holiday?
A payment holiday means you can stop paying your mortgage for an agreed period of time and won’t have any negative impact on your credit rating.
Can I apply for a mortgage payment holiday?
– You’re unable to pay your payments due to the Coronavirus
– You’re not currently in any mortgage payment arrears
– You have consent from everyone on the mortgage
What if I need a longer payment holiday than 3 months?
Your payments might not have to be repaid immediately, and if you have lost your job due to the virus, further help can be provided.
Some lenders will require you to call them while others will allow you to apply online, so check your lender’s website first.
How will this impact my credit score?
If a payment holiday has been agreed in advance, this won’t lead to any arrears being reported to the credit reference agencies so this will not impact your credit score.
But if you haven’t come to an agreement with your lender and you miss a payment, this will be reported to the credit reference agencies as it normally would.
What happens to the payments and how will that impact my mortgage going forward?
A mortgage payment holiday only means a break of up to 3 months from your mortgage payments, and you will need to make up these payments through the term of your mortgage.