Mortgages: Coronavirus

Treasury written question – answered on 12th May 2020.

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Photo of Julian Lewis Julian Lewis Conservative, New Forest East

To ask the Chancellor of the Exchequer, what discussions his Department has had with representatives of the financial sector on endowment mortgage policies due to mature during the covid-19 outbreak with no prospect of discharging the mortgages to which they are linked; and if he will make it his policy to require companies providing such policies to extend their maturity dates until the after the outbreak.

Photo of John Glen John Glen Minister of State (Treasury) (City), The Economic Secretary to the Treasury

The Government has been working closely with the financial sector to ensure appropriate forbearance is being shown across the mortgage market, including a 3-month mortgage holiday to enable affected borrowers to defer their mortgage payments and a 3-month moratorium on possession action to provide customers with reassurance that they will not have their homes repossessed at this difficult time.

Endowments are a form of investment, therefore, any extension to maturity dates would be a bespoke commercial decision and down to individual providers. We advise any customer whose endowment is to mature, to seek advice from both their lender and insurer on how to proceed.

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