The Government have approved a further three months for homeowners to apply for mortgage holidays. The deadline for applications is 31 October. Homeowners who take this option may be surprised when their payments resume as the interest will have accrued and the missed payments will have to be made up. Monthly payments may increase to unaffordable levels.
In addition, taking a six month mortgage holiday may affect a homeowners credit rating with some lenders already declining applications from those who have taken mortgage holidays.
Whilst it may be tempting to take mortgage holidays, our advice is to resume the mortgage payments as soon as you can to avoid a huge increase in the monthly repayments.
For more information on any insolvency procedure, or for free advice or business health check, please call Stella Flemmings at our Driffield, Scunthorpe or York offices and she will make you a free appointment with one of our insolvency practitioners. Meetings can be held in person following strict guidelines, or virtually.