LONDON–It isn’t just homeowners in the U.S. seeking and in many cases receiving forbearances on their house payments.
In the United Kingdom the government has extended a mortgage payment holiday that was to expire over the weekend for mortgage borrowers who have not yet had a mortgage holiday, who may request from their lender a pause in repayments that can last up to six months, and for those who have had their payments deferred already, who can extend their mortgage holiday until they reach the six-month limit, according to the BBC.
During this period interest will still accrue on what borrowers owe.
According to the BBC, the changes form part of a new package of financial support measures announced by the government as England heads into a second coronavirus lockdown.
The BBC reported a new study by the Joseph Rowntree Foundation found 1.6 million households - or a fifth of all British mortgage-holders - were worried about paying their mortgage over the next three months.
“Borrowers who have already reached the maximum six-month mortgage holiday and are still facing difficulty making repayments, are being advised by the (Financial Conduct Authority) to speak to their lender about a tailored support plan,” the BBC stated.
Not Everyone Happy
While some are sighing in relief, the BBC noted there has been a new announcement about financial support for the self-employed.
Groups representing the self-employed are asking for previously announced winter support grants - meant to cover three-month periods - to be increased from covering 40% of profits to something on parity with the support on offer for employees, the BBC reported. They also want eligibility criteria reviewed to help those who have been left out of support so far.
The government says mortgage payment holidays will not be recorded on borrowers' credit file, however some people have told the BBC they found it hard to access other loans once they disclosed to lenders they had put off mortgage repayments.
Some 2.5 million people have taken a payment break on their mortgage since the start of the pandemic, according to figures from U.K. Finance reported by the BBC.