Mortgage payment holidays to be extended

Mortgage payment holidays are being extended for homeowners who have been financially affected by the coronavirus crisis.

Borrowers who have been impacted by COVID-19 and have not yet had a mortgage payment holiday will be entitled to a six-month holiday, the Treasury confirmed.

Those that have already started a mortgage payment holiday will be able to top up to six months without this being recorded on their credit file. The Treasury suggested that the FCA is to announce further information today on how mortgage holidays will work.

In June, UK Finance published figures that showed 1.9 million mortgage payment holidays were granted to struggling homeowners in the first three months of the scheme.

The latest changes form part of a new package of financial support measures announced by the government, with a second coronavirus lockdown due to come into force in England on Thursday.

Following Boris Johnson’s press conference over the weekend that detailed stricter lockdown measures for England, the government has also announced that the Coronavirus Job Retention Scheme has been extended for another month – with employees receiving 80% of their current salary for hours not worked.

Chancellor, Rishi Sunak, said: “Over the past eight months of this crisis we have helped millions of people to continue to provide for their families. But now, along with many other countries around the world, we face a tough winter ahead.

“I have always said that we will do whatever it takes as the situation evolves. Now, as restrictions get tougher, we are taking steps to provide further financial support to protect jobs and businesses. These changes will provide a vital safety net for people across the UK.

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