Coronavirus and your mortgage
Among the many concerns caused by the Coronavirus (Covid-19) pandemic, we want to reassure members who may have difficulties making their monthly mortgage payments that we’re here to help.
A number of methods to support you may be available depending on your circumstances, including a full or part deferral on your monthly mortgage payments.
Last updated 25/11/2020
What is a mortgage payment deferral?
A mortgage payment deferral, sometimes referred to as a payment holiday or mortgage payment concession, is a short-term measure to defer all, or part, of your monthly mortgage payments. We’re able to offer deferrals or extend an existing deferral depending on your circumstances but it’s important to remember that a deferral is a temporary measure, and the amount owed will still need to be repaid and will attract interest until it is repaid.
Use the tabs below to find out more about the options available to you and the impact taking a deferral may have on your future mortgage payments.
If you haven’t applied for a deferral before, you could be eligible for payment deferrals of up to 6 months in total.
You can apply for a mortgage payment deferral if:
- Your household finances have been affected by measures put in place due to Covid-19, for example a reduction in working hours, temporary closure of firms, self-isolation due to having symptoms of the virus or caring for someone with symptoms
- You have consent from everyone named on the mortgage.
Is a mortgage payment deferral the best option for me?
It’s important to remember that a deferral is a temporary measure, and the amount owed will still need to be repaid and will attract interest until it is repaid. This means that unless another arrangement is in place, your mortgage payments will be recalculated when your deferral periods ends, and your monthly payments may increase. In this case, the total amount of interest you pay over your mortgage term will increase.
If you have specific needs due to health conditions or other circumstances, for example, caring responsibilities or language difficulties, please get in touch with us to discuss how we can best support you.
Will taking a mortgage payment deferral affect my credit score?
Your credit file will not be marked with an adverse status in respect of any deferral taken, however lenders may consider other information when making future lending decisions, for example, information provided by applicants or bank account information.
How do I apply?
To apply for a mortgage payment deferral please complete this form and email it to lendingservicesadmin@themarsden.co.uk or contact us on 01282 440500*
After your mortgage payment deferral ends
We’ll write to you before the end of your deferral period to let you know that you are nearing the end, and to provide you with the various options available to you to enable you to make an informed decision on how to repay the amount of deferral claimed. This can include adding the amount to your mortgage balance and paying it back over your remaining mortgage term, extending the term depending on your circumstances, or making a lump sum payment.
Where can I get advice?
Should you need help or advice on managing your finances during this period, support is available through the following websites:
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE