If you’re paying a mortgage and have just been put on furlough or even lost your job, the good news is that the government has just extended mortgage holidays for up to six months.
The former mortgage holiday scheme ended on Saturday 31st October, however the government decided to reinstate it, along with their furlough scheme, as part of a new financial support package to help people get through another lockdown.
How do mortgage holidays work?
If you’re a homeowner who is paying a mortgage and have been affected financially by the November lockdown, then you can pause your repayments to avoid falling into a bad financial situation.
While interest will still accrue on what you owe, you won’t have to contribute anything to your mortgage repayments during this period.
The rules are different depending on whether or not you’ve already received a mortgage holiday this year.
Am I eligible for a mortgage holiday?
- If you have not yet had a mortgage holiday, you can request a pause in repayments for up to six months.
- If you have already deferred repayments, you can extend the mortgage holiday until you reach the six-month limit.
- If you’ve already used up the maximum six-month mortgage holiday and are struggling with your repayments, it’s advised that you contact your lender about a tailored support plan. Unfortunately, the government scheme does not extend past six months.
At Derngate Wealth Management our exceptional team of unbiased mortgage advisors in Northampton have access to the whole market. We understand that while some homeowners will benefit from the mortgage holiday extension, not everyone will. If you’re worried about your repayments and want to receive impartial mortgage advice, we can help. Contact us today to find out more.
We regularly update our blog with the latest mortgage news and tips so you can stay well-informed and up to date.
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