To ask the Chancellor of the Exchequer, with reference to the covid-19 outbreak, what guidance his Department has issued to finance companies on the provision of repayment holidays for people that have lost income or been made redundant.
31 March 2020
Banks and building societies are ready and able to support consumers impacted by COVID-19. On the 17 March, the Chancellor announced on behalf of the sector that banks and building societies will offer a 3-month ‘mortgage holiday’ for borrowers that are financially struggling with their repayments. This forbearance measure will enable affected borrowers to defer their mortgage payments for up to 3 months while they get back on their feet.
The FCA have also published guidance on payment holidays and repossession action for firms that engage in mortgage lending activities. This means that second charge mortgages are also captured by the measures. You can view the guidance here:
As a form of forbearance, the option of a mortgage repayment holiday is open to any customer regardless of whether they are in payment shortfall. Any customer who is concerned about their current financial situation should get in touch with their lender at the earliest possible opportunity to discuss the best option for their them.
The Government has introduced an unprecedented £350bn package of measures to support businesses access the finance they need during this difficult period, and announced significant measures to directly provide support for SMEs including grants, business rates relief and other tax measures.