COVID Repayment Holidays
As part of a wide range of COVID related financial measures, the UK Government announced a mortgage repayment holiday scheme for borrowers suffering financial hardship during the pandemic. The scheme was introduced in March 2020 and then extended in October 2020 until 31 March 2021. The extension end date coincides with a number of other financial schemes introduced temporarily.
According to UK Finance, the number of mortgage borrowers taking up the scheme was 1.82 million at the start of June 2020. this figure had significantly reduced by the end of October 2020, but with a further extension to the scheme figures might rise again.
About the scheme
What to consider
Support for Mortgage Interest
The assistance paid to homeowners is paid as a loan, not a benefit. The loan accrues interest. and does not have to paid back the in instalments. Instead, the amount owed, plus interest, is added as a charge on the property. This means that the debt must be cleared if the property is sold or ownership of the property is transferred.