The mortgage payment holiday was due to end in October. But the government has announced that the scheme will be extended. This is in order to help individuals combat the financial impact of coronavirus.
Borrowers ,who have not taken a mortgage holiday before, are entitled to take a 6-month payment break on their mortgage payments.
Those who have taken a holiday before can extend it as long as they don’t exceed the 6-month limit.
Mark Harris, chief executive of SPF Private Clients argues that this payment break is a great thing for borrowers who are worried about keeping up with their mortgage payments. This extension will provide homeowners with a sense of comfort.
It is important to remember that you should only take a payment holiday if you need one. This is because your interest will go up. You will end up paying more in the long run to pay it back.
The new lockdown in place till December 2nd has also meant that the furlough scheme has been extended. The self-employed can also receive 80% of their monthly earnings if they are unable to work.