Martin Lewis has issued a huge update to every homeowner in the country amid a spate of mortgage holidays.
The MoneySavingExpert.com founder and cash-saving guru updated his MSE newsletter for subscribers.
And it now contains brilliant advice to anybody who owns their own home.
Martin, who has his own ITV1 show, The Martin Lewis Money Show, revealed anybody can now apply for a three-month extension on their mortgage holidays.
He wrote: “Under the regulator’s plans, you’ll have till October to apply for one, and those who have already had one can extend.
“Yet interest racks up and it can impact you creditworthiness…
“My hope is that as these holidays are specifically for the short-term financial hit of coronavirus – and as the practice is so widespread – it won’t be used by many firms, and where it is it won’t tarnish individuals’ credit reputation for too long.
“But there’s no real way to know.
“Most importantly, I don’t believe this should stop anyone who needs a mortgage holiday from getting one – if it’s crucial for cash flow, just do it.
“Yet for those on the border, who may find it temporarily useful but can cope without it, add this to the fact that interest racks up during the payment holiday and I’d err on the side of caution.”
Christopher Woolard, interim chief executive at the FCA, said: “Our expectations are clear – anyone who continues to need help should get help from their lender.
“We expect firms to work with customers on the best options available for them, paying particular attention to the needs of their vulnerable customers, and to provide information on where to access help and advice.
“Where consumers can afford to restart mortgage payments, it is in their best interests to do so. But where they can’t, a range of further support will be available. People who are struggling and have not had a payment holiday will continue to be able to apply until October 31.”
UK Finance said: “These steps taken by lenders to help people whose finances have been hit by the crisis are part of the banking and finance industry’s plan, working with the Government and regulators, to help customers get through these tough times.”
Last week, the organisation revealed lenders handed out 1.8 million mortgage payment holidays so far. A payment holiday still means the interest must be paid at a later date in most cases, it added.
Stephen Jones, UK Finance CEO, said: “Banks and building societies will continue to help their customers get through the crisis and have a wide range of support available.
“Anyone with concerns about their financial situation should check with their lender to discuss which form of support would be the best choice for them.”
Discussion about this post