Is a covid 19 Mortgage payment holiday affecting the credit score?

jackroit

Hi
is a covid-19 Mortgage payment holiday affecting the credit score? and is it worth to apply for it?

cs101

If agreed by the lender and you, then nothing will be affected on credit file. If you can cancel yourself then it will be.

kah1019

They have said it will not impact your credit file. Therefore your score will not go down during the PH when payments are not made.  However they will mark you had an agreed PH on your credit file. If you later apply for credit this will be seen by the potential new lender who may or may not take this in consideration when deciding if you are a good candidate for lending.   

Pollycat

Read this link:

https://www.moneysavingexpert.com/news/2020/03/uk-coronavirus-help-and-your-rights/?_ga=2.179346279.2115566334.1591522891-1909614533.1591522891

You'll need to scroll down to this heading:

Mortgage payment holidays won't be marked as missed payments on your credit report – but they could still affect your creditworthiness

dunstonh

The FCA have confirmed that lenders can use authorised arrears in future lending decisions.  i.e. if you have taken a "holiday", then a lender is allowed to treat it as a negative when deciding future lending.    Already, we are seeing new mortgage applications (including remortgages) asking about authorised arrears/payment holidays.   So, whilst it does not appear on your credit file as defaulted. It will impact on future lending decisions (over the next 3-5 years).   It doesnt mean an automatic rejection.   It is just a negative pull on your application.   It will not impact on rate switches with the same lender.