Mortgage payment holiday extended

Homeowners struggling to pay their mortgage because of Covid-19 will be able to extend their mortgage payment holiday for a further three months, or start making reduced payments, in proposals published 22 May.

The availability of a three-month mortgage holiday was first announced in March as part of a package of support for individuals, businesses and the economy. Over 1.8 million mortgage payment holidays were taken up, and the first of these will be coming to an end in June.

You can read the full government announcement here.

The Financial Conduct Authority has published new draft guidance for lenders which you can read here.