Three Month Mortgage Break

Vanessa27

My friend has been told by his mortgage leader that he cannot apply for the break ( he has been laid off from work) because he has had his mortgage for less than 12 months . Is this right under the circumstances.? 

mwarby

Normally there are such restrictions jn place for mortgage holidays. The mortgage company should be looking to relax such things at this time when needed though. A lot will depend on his actual circumstances, some people are going into this without thinking and not actually needing it(and misunderstanding what a mortgage holiday is, you have to make good in the end, and the holiday will ultimately cost in interest payments), I hope if he or anyone else actually needs help then help will be offered

Alexland

The 12 month rule might be in their detailed mortgage terms but it's not in the spirit of the new agreement between the government and the lenders so I suggest your friend calls back to speak to another agent and if required raises a formal complaint.

https://www.gov.uk/government/news/chancellor-announces-additional-support-to-protect-businesses

"Mortgage lenders have agreed they will support customers that are experiencing issues with their finances as a result of Covid-19, including through payment holidays of up to 3 months.This will give people the necessary time to recover and ensure they do not have to pay a penny towards their mortgage in the interim."