In accordance to Chancellor’s pledge on mortgage support for households affected by coronavirus banks have implemented mortgage holidays.
There will be a fast-track system for approval, but not everyone will be granted a payment holiday. The unpaid interest will still be recovered later, but individual credit ratings will not be affected. Payment holidays increase the amount you owe.
To give you some indication, please look below at Nationwide’s criteria obtained on 17th March 2020 on their website
- You haven’t had a payment holiday in the last 12 months
- You haven’t been declined for a payment holiday in the last 6 months
- Your mortgage is less than 80% of the value of your home at the end of your paymentholiday
- The Department for Work and Pensions aren’t making payments to your mortgage
- You haven’t had a term extension within the last 12 months
- Your account hasn’t been in arrears in the last year
- Your property isn’t currently let
- Your mortgage isn’t shared ownership
- Your mortgage wasn’t regulated by the Consumer Credit Act at the time you took it out
- Your mortgage term has at least 12 months remaining after the payment holiday finishes.
- You haven’t taken additional borrowing on your Nationwide mortgage in the last 12 months
For now, not all the banks have reacted but we are hoping to get further information from all the major lenders.
If you have any questions, please do not hesitate to contact Alexander Associates Mortgage Brokerage. We are more than happy to assist you.
Your home may be repossessed if you do not keep up repayments on your mortgage.