Mortgages: Coronavirus

Treasury written question – answered on 21st October 2020.

Alert me about debates like this

Photo of Emma Hardy Emma Hardy Shadow Minister (Education)

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of extending mortgage holidays beyond 31 October 2020 for people who remain financially affected by the covid-19 restrictions.

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

Following the Coronavirus outbreak, the Government worked quickly with lenders and financial regulators to give people access to payment holidays on their mortgages. This gives customers a much-needed respite period, where no repayments on these products are due. It was necessary to bring this temporary measure in, in order to give customers time to smooth out their finances that may have taken a hit by the pandemic.

The FCA published guidance on mortgage payment holidays on 14 September setting out that firms should continue to provide support through tailored forbearance options for those borrowers that are facing ongoing financial difficulties. This could include granting new mortgage payment holidays. As part of this guidance any forbearance granted beyond 31 October will be reflected on the consumer’s credit file in the usual manner. As borrowers still requiring assistance after 31 October could be in serious financial distress the FCA believe it is right that lenders are able to understand their financial position in order to lend responsibly.

Does this answer the above question?

Yes1 person thinks so

No1 person thinks not

Would you like to ask a question like this yourself? Use our Freedom of Information site.