Banks have agreed with the Chancellor that they will offer forbearance on mortgages. Banks can make a voluntary agreement for a three-month payment break. Banks are also offering missed payment waivers and reduced payments. Most banks have advised that mortgage holidays will increase future monthly payments rather than extend the term of the mortgage.
We recommend you call your mortgage provider to see what they can offer, for example, HSBC and First Direct said they would give customers the option to extend their mortgage terms or switch rate with HSBC adding it would let customers switch to an interest-only mortgage.
Some lenders are also offering reduced payments, payment holidays and fee waivers on loans and credit cards and banks are allowing customers to access their fixed term savings.
Emergency legislation has been introduced to ban new evictions to protect renters and landlords have been told the three-month mortgage payment holidays will also be available on buy to let mortgages.
Individuals who have stopped claiming child benefit due to the high-income child benefit charge, may want to restart their claim to ease cash flow. Child benefit received from April for the 2020/21 tax year won’t need to be repaid until January 2022.