Around 2m mortgage customers (including buy-to-let borrowers) have taken a mortgage payment holiday*, and for those that haven’t, they may be able to apply for one up to the 31 October 2020.
However, whilst it shouldn’t affect your credit rating, do consider if it’s the most suitable route forward for you:
(i) As it’s not so much a ‘holiday’, but more a mortgage payment ‘deferment’.
(ii) You need to agree this with your mortgage lender, so you can’t just stop making payments.
(iii) Lenders may ask if you participated and may factor that into future loan applications.
THE FUTURE
Whilst over 70%* of participants have returned to making full mortgage payments, the Financial Conduct Authority recognises that some may require further help and has asked lenders to deliver structured payment plans.
However, this support will come at a price, including being flagged on your credit file.
