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Mortgage holidays are coming to an end

Enable’s IFAs in Bishop’s Stortford know that many homeowners have been taking mortgage holidays through this Covid-19 lockdown period. Mortgage flexibility has been a useful financial tool during this period of change and uncertainty. But homeowners must be aware that the Financial Conduct Authority (FCA) has revealed that special COVID mortgage payment holidays in the UK will not extend past the end of October 2020. 

Throughout lockdown, the FCA has tried to make clear and indeed Enable’s IFAs have also emphasised that mortgage holidays will not last forever. Lenders have been offering both full mortgage payment holidays and partial payment holiday but they were only ever temporary. In addition, and as with any mortgage holiday the outstanding amount will always need to be paid back at a later date. On top of having to pick up the outstanding amounts that would have been due during the mortgage holiday the interest on those amounts will also have been continuing to build. 

Head of mortgages at Trussle, Miles Robinson said recently. “It’s clear that mortgage payment holidays have proved a vital lifeline for some homeowners who have suffered financially as a result of the coronavirus pandemic. “However, the FCA has recently announced that the relief will not extend beyond 31st October 2020. It’s important to know that unlike before if you need financial support from your lender after 31st October, it will be marked on your credit file. We’d urge homeowners to only utilise the mortgage payment holiday if it’s essential.”

As the mortgage holiday comes to an end this could be another time for homeowners to think more actively about remortgaging. Enable’s IFAs in Bishops Stortford can help you look at your remortgaging options to help you manage your financial commitments through this Autumn of change. 


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