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Gloucestershire Business News

Treasury adds three months to mortgage break

Mortgage holidays to help borrowers through the coronavirus pandemic have been extended by three months.

The break from payments, introduced in March, had been due to end in June for the first applicants.

But the Treasury has extended the scheme to provide greater certainty for those affected with applications now open until the end of July.

Economic secretary to the Treasury John Glen said: "We're doing everything we can to help people with their finances at this difficult time and that includes making sure people get the support they need with their mortgages.

"That's why we're working with the banks and lenders to extend payment holidays if people need them.

"Everyone's circumstances will be different, so when homeowners can pay some or all of their mortgage, they should work with their lender on a plan.

"But if they are still struggling, I want them to know that help is there."

More than 1.8 million mortgage customers have taken advantage of the scheme through their lenders since it was introduced with UK Finance estimating they save an average of £755 a month.

A Government spokesman said: "Some may be able to resume their full monthly payments, others may be able to pay a proportion of their monthly payment or temporarily switch to an interest only mortgage, and others will opt to extend their mortgage payment holiday."

The Treasury had been worried stopping the relief when initially planned could lead to a huge number of families facing money problems.

Mortgage lenders are expected to contact customers to discuss options and to extend the application period until October 3..

The Treasury has also announced it is extending the ban on home repossessions to October 31.

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