What if I have a buy-to-let mortgage?
Officially, buy-to-let mortgages are not covered by the regulations around payment holidays issued by the FCA. However it should be possible for you to access payment holidays if you are a buy-to-let landlord, and your tenants have been financially affected by coronavirus.
If you’re a landlord, you’ll be expected to pass on this holiday to your tenants.
If I'm on a debt management plan (DMP), can I still request a mortgage holiday from my lender?
Being on a DMP won't affect your eligibility for a mortgage holiday, unless you have mortgage arrears (whether or not they're being paid through the plan). If you do have mortgage arrears, your lender may still be able to help you, but you should contact your lender as soon as possible to explain the situation.
What's the difference between deferment and forbearance?
Mortgage payment holidays under normal circumstances are a form of deferment. This simply means that a form of debt that you owe can be 'deferred' or delayed until you can afford to pay it.
Forbearance is when creditors (including mortgage providers) take account of the fact that you may be in difficult financial circumstances, and give you relief from payment, interest and charges. Due to coronavirus, creditors have been showing forbearance across a range of different debts, including mortgages.
What if I can't pay my mortgage this month?
If you can't pay your mortgage this month, the first thing you should do is speak to your mortgage lender, to find out if they can help you. A mortgage holiday is one of the options they might offer you, but there are others (including switching to interest or repayment only) which may be more suited to your needs.
Mortgage holidays have many advantages, but they aren't right for everyone, and you shouldn't take one unless you feel it's really necessary.
Whatever your mortgage situation, it's important to speak to your lender.