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Mortgage Payment Holiday during Coronavirus

FCA’s proposal to support you if you need help with mortgage payments - what next?

According to the trade body UK Finance 1.82 million customers requested a payment holiday since the scheme was unveiled. That is one in six of all mortgages in the UK.

If you are one of them the good news is you have several options.

Mortgage Payment Holiday – If you are currently using the scheme and continue to need support, you will get help as it has been extended for further three months. The thing to note is that it is meant only for those in temporary financial difficulty, if you think you will not be able to repay after the scheme’s end – seek assistance immediately. Conversely if you are not in genuine financial distress do not apply!

If you have not yet had a need for payment holiday you will be able to apply until 31st October 2020. This extension is meant for those of you who may find themselves impacted at a later date.

If you can maintain some form of payment, however small, it is best that you do by requesting partial payment holiday. Doing this will accrue less interest and the eventual repayments will be lesser than with full payment holiday.


If you can afford to return to full repayment each month, it is in your best interests that you do so - at the end of a payment holiday, you must resume payments and put a plan in place on how the missed payments will be repaid.

Covid-19 is a public health crisis and it is imperative you are able to keep safe in your own home. The current ban on repossessions of homes will continue until 31 October 2020. This will ensure you are able to comply with the government’s policy to self-isolate if you need to.

Payment holidays and partial payment holidays offered under this guidance should not have a negative impact on your credit file. However, you should remember that credit files aren’t the only source of information which lenders can use to assess your creditworthiness.

If you need help or assistance with any of the above please do get in touch – you need not struggle alone.

Royale Thames Wealth Ltd is an Appointed Representative of New Leaf Distribution Ltd which is authorised and regulated by Financial Conduct Authority number 460421. Your home may be repossessed if you do not keep up repayments on your mortgage.


TEL. 020 8720 7249 or 07908 109 741