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Mortgages: Private Rented Housing

Question for Treasury

UIN HL2003, tabled on 14 July 2021

To ask Her Majesty's Government whether buy-to-let mortgage holidays constitute a deferred payment which has to be repaid to lenders.

Answered on

27 July 2021

Mortgage holidays have provided support for borrowers to manage their finances during a period of uncertainty. Borrowers accessing payment holidays, including buy-to-let mortgage consumers, will still need to repay the full balance of their loan, and will continue to accrue interest during the payment holiday, unless the lender has indicated otherwise. There are various options for managing this, for example, by increasing their remaining monthly payments, or by adding an extension to the term. Borrowers should talk to their lender to understand the options they offer.

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