With the news surrounding COVID-19 changing on a daily basis, homeowners, landlords and tenants are all facing a lot of uncertainty. Over the last few days, high street banks, building societies and other money lenders have been announcing ways in which they’ll be helping those with mortgages to get through the next few months.

Do I qualify for a mortgage holiday?

At this time, there’s a lot of confusion about who can apply for help from their lender. Understandably, each individual situation is different, however, if you’re concerned about your ability to keep up with payments, we strongly advise you contact your mortgage lender as soon as possible. To make things easier, Which? has put together a list of those who could apply for a mortgage holiday:

  • Homeowners who are up-to-date on their regular payments
  • Anyone whose income has been directly or indirectly affected by the Coronavirus
  • Landlords whose tenants’ income has been directly or indirectly affected by the Coronavirus. 

When will I be expected to pay the months I’ve missed?

This really depends on what is agreed by your money lender. Most homeowners will see a slight increase to their remaining monthly payments, especially if they still have plenty of years left on their term. However, those with shorter terms may see larger increases. The Money Advice Service also suggests some banks will extend your mortgage term to ensure all payments are eventually covered so it’s essential you weigh the benefits of a mortgage holiday against the implications that higher monthly payments or a longer payment term could have on your finances.

How do I apply for a mortgage payment holiday?

If you’re in a position where a mortgage holiday is right for you, then the first step is to directly contact your mortgage lender. Some banks and building societies have already set up online application forms, so it’s best to check what’s available to you first.

As a group, the best advice we can give is to contact your own lender directly for the most recent information as individual situations may differ. At this time, we are continuing to support our customers with help and advice. Whether you’re a homeowner, landlord or tenant, talk to us directly if you have any concerns.

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