• Michael Roberts FPFS

Mortgage Payment Holidays

Updated: Mar 21

In a bid to help individuals who are affected by the Coronavirus, the government have

announced support by way of implementing mortgage holidays for borrowers struggling to meet their repayments.

The mortgage payment holiday won’t pay your mortgage for you, but it will help to give some flexibility if you are facing difficulty meeting your payments in the short term. The scheme will give flexibility by allowing you to stop or reduce your mortgage payments for up to three months. Although this may not be suitable for everyone, it could offer some much-needed breathing space in certain circumstances.

In the first instance, if you wish to take advantage of this scheme you should contact your lender, where a fast-track approval will take place, as not everyone will be granted a payment holiday.

We understand this approach will also be adopted where necessary for Help to Buy customers paying interest on their Equity Loans.

Crucially, we understand that individual credit records should not be impacted.

It’s likely the lender will spread your outstanding payments over the outstanding term of your mortgage, so you may see an increase in your normal monthly mortgage payments once they resume. The shorter the term left on your mortgage, the larger the increase in your monthly payments will be. You should consider the impact this will have on your future financial commitments.

Further information on mortgage payment holidays can be found here:


For those who are renting, the government has announced emergency legislation to prevent new evictions from social or private rented accommodation. Landlords will not be able to apply for a possession order until their tenants have missed rent payments for at least three months.

However, to help release the pressure, landlords will be able to apply for a mortgage holiday on their buy to let mortgage. If you are struggling to meet your mortgage payments, you should contact your lender as soon as possible.

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