Mortgage holidays extended by three months

Homeowners struggling financially due to COVID-19 can 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. This respite was due to end in June for the first applicants.

However, the Treasury was concerned an abrupt end to the scheme could produce a cliff-edge effect, with families facing severe money problems.

The date for homeowners to apply to extend their mortgage holidays has also been extended, with customers able to apply until the end of October.

The Treasury said borrowers should still pay their mortgages if they could.

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.

More than 1.8 million mortgage customers have taken advantage of this scheme so far.

Click here for more information from the Money Advice Service.

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