Mortgage holidays ends soon and according to the Office for National Statistics (ONS), 11% of the British workforce is currently on partial or full furlough across all sectors.

After Mortgage holidays, a new Job Support Scheme will be available for those who have been furloughed.  As of the 1st November, the scheme will be in place for six months and employers in the UK will be required to decide what happens to their furloughed staff. 

While the government has announced further support after furlough, mortgage holidays will end as of 31st October. Many who have been on furlough, or had a mortgage payment holiday, may see a significant decrease in their income for a further six months – this will become challenging for those needing to keep up with mortgage payments and household bills.

What do you need to do when your mortgage holiday ends?

Unless you have been in touch with your lender, you will be expected to pay your usual monthly payment as of November. It’s vital you get in touch with your mortgage provider as soon as possible to discuss how you will make up the shortfall in the future.

When taking a mortgage payment holiday, you may have already discussed your plans with your advisor, however, if you haven’t, it is recommended you do so as soon as possible to find out your options.

If you can now afford to re-start your mortgage payments, you should do this as soon as you possibly can.

What if you can’t afford to repay your mortgage?

If you have lost your job or been given reduced hours that will interfere with repaying your mortgage, you must provide evidence to your lender.

In the current climate, most lenders are quite understanding and will offer support through this difficult time, this is why it’s important to discuss your situation with them. 

Your mortgage provider will be able to provide you with various options such as; spreading your deferred payments over the outstanding term of your mortgage, increasing the length of your mortgage term or making interest or capital only payments. Lenders may also offer to extend your payment holiday by a further three months. 

Already in arrears?

It might seem daunting to discuss these situations with your lender, but it’s really important to do so. If you have already missed payments and are not able to come to an agreement with your lender, you should consider getting debt advice as soon as possible, particularly if you have other debts as well.

Need further advice?

If you need any further advice regarding your mortgage holiday ending, get in touch with us by either using the form below or click on the banner above to get our contact details. 
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