We hope you are keeping well during this unusual time. We know many of our Syfters may need guidance and help in relation to their mortgages, so we have put together a post that we hope you will find useful. It will include what a mortgage holiday is, how it may benefit you, and what the application process to obtain one entails. Although Syft isn’t involved in such a process, we have placed some useful further reading and links at the end of the post to provide support for you.
So, what is a Mortgage Holiday?
A mortgage payment holiday is when your monthly mortgage repayments are paused for a set period of time. During times like these, it’s a great idea if you are under financial pressure, to pause any monthly payments for a set period of time. Under the government’s policy, you can apply for a payment holiday of currently up to three months.
How might it benefit you?
No matter who you are or what industry you work in, we have all been affected by Covid-19, therefore, it’s important to take consideration of any government policy that might apply to you.
Payment holidays may be available to any homeowners who are concerned about their ability to meet their mortgage repayments, for example, due to a loss of work or other changes in their circumstances.
What do I do next?
We always recommend doing extra reading around such topics before making any applications, so check out the following useful article on this website for more information. Once you have all the information you need, contact your lender and tell them you are experiencing payment difficulties due to coronavirus. You don’t need to have coronavirus to be eligible for this scheme so don’t worry about that.
There will be a fast track approval process in place and you won’t need to provide evidence or have an affordability test. So, hopefully you should get a quick decision from your lender which is a bonus! Individual credit ratings should not be affected but if you are worried about this you should speak with your lender.
You can find the full GOV UK guidance on payment holidays here.
Need some more information? No problem, explore the following links:
- The Guardian: Mortgage Payment Holidays
- Money-Saving Expert, Martin Lewis has put together a really useful article on how to understand your rights during Covid-19, check it out here.
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Keep safe everyone,