The UK government has announced that due to the coronavirus outbreak and the financial implications it’s posing on families, those who are struggling can apply for a three month mortgage holiday.
Statistics reveal one in nine families within the UK have applied for a mortgage holiday since the option was announced.
On March 17th it was agreed that banks would offer help with mortgages to those who ask for it. This help is not compulsory and is a voluntary agreement with the bank, however it’s proving to be giving families around the country the financial assistance they need during the COVID-19 pandemic.
If you want to apply for a mortgage holiday, the easiest way to do so is to apply online through your bank. It shouldn’t take long (only a few minutes), and will be much quicker than queuing over the phone.
How does the three month holiday work?
The ‘holiday’ essentially means you will have a three month period where you do not pay your mortgage. When your mortgage payments return to normal after the holiday, you’ll see a slight uplift in the expense as your three months’ worth of ‘holiday’ will be spread out across your future payments. You will still be charged interest on your ‘holiday’ period, but it will be added to your overall mortgage cost.
How can I get a mortgage holiday?
To apply for a mortgage holiday you must get in touch with your lender. Don’t just stop your direct debit payment or standing order! A formal agreement must be made with your lender about how long you wish your mortgage holiday to last. It’s worth noting that your mortgage holiday will not come into effect immediately, some lenders warn your break will not take effect until the month after you apply.
Are you thinking about applying for a mortgage holiday?