One in nine UK homeowners has taken a so-called “mortgage holiday” as their finances have been hit by the effects of COVID-19. Lenders have agreed that 1.2m homeowners can delay repayments as jobs are cut and wages reduced. Typically, this defers a mortgage bill of £775 a month, with borrowers given the option of delaying up to three months of repayments. More are likely to take up the option, which should not affect credit ratings. However, the scheme has drawn criticism after it was revealed that banks are set to make more than £600m in extra interest paid by cash-strapped homeowners taking payment holidays.
BBC News (14/04/2020) Daily Mail (14/04/2020)