Blog Article

Is your payment holiday coming to an end?

Is your payment holiday coming to an end?

Date: 11 January 2021 | By: cosgrove

If you took out a payment holiday on a loan, credit card or mortgage because your income has been affected by the pandemic, you should be thinking about how to manage your finances when the payment holiday comes to an end.

Missed the deadline of 31 October?

If you already have a payment holiday arranged, you could apply to extend this for another three months, provided you did so before 31 October. If you have already had six months of payment holidays, your lender may suggest more suitable alternatives to a further payment holiday. If you have been making payments but are concerned about struggling over the next few months, 31 October was also the deadline to apply for a new payment holiday.

Consider other options

The payments missed during a payment holiday will be added to your outstanding balance, together with interest. This means that your monthly payments will be higher than before, so a further payment holiday may not be the best option. For overdrafts or credit card debts, you could consider a balance transfer, to move your debt onto a zero percent credit card deal, or perhaps onto a loan.

Tailored support for mortgage holders

The Financial Conduct Authority (FCA) has introduced new rules for mortgages, which means your lender should consider a range of support options, such as extending the mortgage term or allowing reduced payments.

Get in touch to discuss your options. Don't worry if you don't have time for your mortgage because we do!

Your home may be repossessed if you do not keep up repayments on your mortgage.