What support from lenders can I get?
The governments new policy aims to ease the financial stress facing many borrowers during the coronavirus (COVID-19) pandemic. Details of individual lenders procedures are only just being published and there’s been some confusion about who can actually apply. Since the government announcement, homeowners and landlords can now apply for up to three-month mortgage payment holiday by contacting their lenders direct. As at 20th March 2020, thirty-two lenders have said they would provide borrowers with support through the government scheme, with a further thirty-five still formulating their plans. Further details on how to apply with your specific lender may already be available and published on their website, alternatively, you can contact Pinpoint Finance on 01904 866 100 for the latest updated information.
What is a mortgage payment holiday?
A payment holiday allows you to stop paying your mortgage payments for an agreed period of time, without having a negative impact of your credit rating.
How can I apply for a mortgage payment holiday?
Each lenders process is different, most lenders are saying you can apply for a mortgage payment holiday if:
- Your ability to pay your mortgage has been affected by the Coronavirus pandemic
- You are up to date with all your monthly mortgage payments
- You have consent from everyone named on the mortgage
At present only the borrower can request the mortgage payment holiday, however, this may change, and requests could be allowed directly from mortgage intermediaries like Pinpoint Finance.
If you are not up to date with your mortgage payments, please do not worry the Financial Conduct Authority have already stated that all customers should be treated fairly in these circumstances, so the above could still apply.
Is a mortgage payment holiday the right thing for me?
A mortgage payment holiday may not be right for everyone. You may have another alternative, for example: If you have built up a reserve through overpayments, you may be able to underpay instead.
Its important to remember that a mortgage payment holiday is a temporary break from your mortgage payments. Designed to help you through these uncertain times. The current scheme is for a period of up to three-months, this may be extended further by the Government as the situation progresses.
Before you request a mortgage payment holiday, please remember:
- Your repayments will start again, after the mortgage payment holiday has ended
- Interest will still be calculated on your mortgage during your mortgage repayment holiday
- The total amount of interest you will pay on your mortgage will increase
- Your new mortgage repayments will be recalculated over the remaining term of your mortgage, so you may see an increase in your monthly repayments, going forward
You also need to consider if you are close to the end of your current mortgage product. Typically, you will not be able to switch mortgage products during a mortgage repayment holiday. Therefore, if you are due to switch to another product, offered by the lender, please switch before you request a mortgage payment holiday.
Pinpoint Finance will offer all customers, new or existing a FREE product transfer service. This can be done, usually 3-4 months before your product expiry date, without penalty.
How long will it take?
As you will appreciate, lenders are under extreme pressures with many customers contacting them for various issues at the moment. All lenders are working hard to process customers requests and aim to confirm back to you within 7 working days. Due to high volumes of applications, this may take slightly longer. Please bear with them.
When will my mortgage payment holiday start?
Your mortgage payment holiday will start from your next payment, however, should your next payment be due in the next few days, this may not be possible, and it will start from the following month. The lender should confirm this when they write to confirm your mortgage payment holiday has been agreed.
Please do not cancel your direct debit, as a missed mortgage payment can result in your credit rating being negatively affected.
How to contact us:
Download this statement here.