20 / 04 / 2021
Between the start of the coronavirus pandemic and the mortgage holiday cut-off date two weeks ago, hundreds of thousands of home owners applied for payment breaks each month.
According to UK Finance, 2.7million people in the UK took advantage of the scheme, which allowed them to pause their mortgage payments for up to six months and pay the money back later.
It was a lifeline for many. The FCA’s Financial Life Survey, published in February, found that of those who have taken a payment deferral for their mortgage, 70 per cent would have struggled without it.
But that figure suggests that nearly a third of borrowers who took a mortgage holiday could have done without it.
If you have taken a mortgage holiday, lenders are also likely to ask whether you have used any other Government support schemes during Covid.
Lenders will take into consideration the applicant’s overall circumstances, mainly focusing on whether the income is sustainable,’ says Dean Esnard, director of independent mortgage broker, Magni Finance.
‘They are looking more closely at those who have previously been furloughed or received Government support, and will want to see the borrower is now in a stable financial position.’
