When it comes to financial difficulties, mortgage payment holidays are nothing new. However, historically it could be difficult to arrange one.
Thankfully, with COVID-19, lenders have simplified the process. Furthermore, this is for residential AND buy to let.
In most cases it’s a self certified process. The borrower just confirms they are experiencing financial difficulties due to COVID-19.
The good news is that this will NOT affect a person’s credit score. However, payments will increase after the payment holiday period.
People needing assistance should contact their lender in the first instance.
Details from some of the main lenders can be found here –
How this will affect mortgage underwriting remains to be seen. We would like to think lenders will take a common sense approach. Regardless, people that need this facility should take it. It’s certainly preferable to falling into arrears.
If you have any questions, please get in touch. We’re here to help.