October 31 is the deadline for the mortgage payment holidays

There will be no new extension for mortgage payments.

The Financial Conduct Authority (FCA) has revealed that the UK COVID mortgage payment holidays will not extend beyond October 31st. Any financial support beyond that point will be flagged on credit files.

The FCA has emphasized that paid holiday and partially holiday vacations are temporary, and the outstanding amount will need to be repaid later. Interest will also continue to increase during this time, and repayments may be higher after the FCA pay holiday.

“Now that the pandemic has passed, it is time to pay again.”

Miles Robinson, head of mortgages at online mortgage broker Trussle, commented on the deadline:

“It is clear that the mortgage payment holidays have proven to be a vital lifeline for some homeowners who have suffered financially as a result of the coronavirus pandemic.”

“However, the FCA recently announced that the relief would not extend beyond October 31st, 2020.”

“It is essential to know that, unlike before, if you need financial support from your lender after October 31st, it will be marked on your credit file. We urge homeowners to use the mortgage payment vacation only if it is essential. “

“Anyone considering a mortgage payment holiday should also be aware that once the mortgage payment holiday ends, their monthly payments will increase slightly.”

“This is because the additional interest is added to your total mortgage balance. Some lenders offer other potential options, including changing part of the loan amount to short-term interest payments.”

“For existing homeowners, now might also be a good time to think about relocating. Any current or aspiring homeowner considering taking a mortgage payment vacation should seek professional advice as soon as possible to discuss their options.”

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