Furlough scheme and mortgage holidays prolonged as England braces for brand new lockdown
Mortgage payment holidays are set to be extended
The Government’s also announced that mortgage payment holidays will no longer end today.
We don’t yet have full details of how they will be extended, but the financial regulator the Financial Conduct Authority has said it plans to propose updates to its guidance on this on Monday (2 November). Here’s what we know so far about the new proposals, which are designed to help those who have been financially affected by coronavirus:
- Borrowers who’ve not yet had a payment holiday will be able to request one. This could last up to six months.
- Borrowers who’ve already started a payment holiday will be able to extend it. This would be up to a maximum of six months.
- New and extended mortgage holidays WON’T show up on your credit report. So if you’ve not had one yet and apply in November, or if you’ve had one for less than six months and extend it, it won’t show up as a missed payment. (Remember though, even if it’s not on your credit file, lenders can still find out about the payment holiday in other ways, and can use that information to help their decision when you next apply for credit.)
- You SHOULDN’T contact your lender about this yet. The FCA says lenders will provide info “soon” on what this means for customers and how to apply.
- Borrowers who’ve already had a six-month payment holiday and still need help will be offered ‘tailored support’. You’ll be asked to speak to your lender to discuss this.
See our Coronavirus Finance & Bills Help guide for full info on how mortgage holidays work, and the pros and cons of applying for one. We’ll update it with more info when the FCA releases it on Monday.
There was no announcement today of any new help for renters, but we’re checking what if any additional support may be offered and will update this story when we hear back.
Strict new travel restrictions apply to those in England
As part of the new national lockdown in England, there will be strict new travel restrictions from Thursday 5 November until Wednesday 2 December.
If you live in England, overnight stays and holidays away from your home will not be allowed during that period – including holidays in the UK and abroad. This includes staying in a second home, if you own one, or staying with anyone you do not live with or are in a support bubble with.
For more help on the travel rules and your refund and cancellation rights, see our Coronavirus Travel Rights guide.