BREAKING: Mortgage holiday scheme to be extended for another four months

first_imgThe Financial Conduct Authority and HM Treasury have announced that home owners are to be offered an further four months of mortgage holiday to help them through the Coronavirus crisis, if they are still struggling financially.The original scheme was due to run out at the end of June but is now to finish at the end of October, although the FCA says home owners should return to paying their mortgages where possible. The FCA is to consult with lenders until 26th May on the proposals and then introduce the extended scheme.As Coronavirus has ravaged the economy, the mortgage holiday scheme has proved popular and some 1.8 million homeowners – up from 1.6 million last month – have taken it up, but the FCA is worried that these borrowers will then face a ‘cliff edge’ once the relief ends.But it is not clear yet whether an extended scheme would include landlords or those on the Help to Buy scheme.Both groups currently have the opportunity to take up a similar three-month mortgage holiday, although in landlords’ case only if their tenants are suffering financial hardship and can’t pay their rent.RecessionAll the mortgage holiday schemes were due to finish at the end of June, but comments by the Chancellor Rishi Sunak in recent days that the UK faces an unprecedented recession once the economy tools up again, and the ongoing social distancing rules that will keep many leisure and food businesses closed, mean mortgage holders will need longer to get back on their financial feet.Christopher Woolard, Interim Chief Executive at the FCA, says: ‘Our expectations are clear – anyone who continues to need help should get help from their lender.“Where consumers can afford to re-start mortgage payments, it is in their best interests to do so.”  Rishi Sunak Christopher Woolard FCA mortgage rules Financial Conduct Authority May 22, 2020Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles Letting agent fined £11,500 over unlicenced rent-to-rent HMO3rd May 2021 BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Home » News » Housing Market » BREAKING: Mortgage holiday scheme to be extended for another four months previous nextHousing MarketBREAKING: Mortgage holiday scheme to be extended for another four monthsFinancial Conduct Authority says the extended relief period is necessary to prevent a cliff edge of mortgage defaults.Nigel Lewis22nd May 202002,718 Viewslast_img read more