What you should do if you are worried about keeping up mortgage payments due to the coronavirus crisis

Citizens Advice Hartlepool says it is receiving regular requests for help and advice from householders who are struggling to keep up their monthly mortgage payments during the current crisis.

But the service, based in Park Road, is reminding people of guidance issued to lenders by the Financial Conduct Authority that homeowners should not be at risk of losing their homes.

Manager Joe Michna said: “The Financial Conduct Authority (FCA) has issued new guidance to mortgage lenders on how to treat their customers fairly during the coronavirus crisis.

“However, the most important thing that households who are struggling to pay their monthly mortgage can do is to contact their lender rather than pretend that the problem may go away.”

Mortgage holders can now apply for ‘payment holidays’ where monthly repayments are paused for a set period of time.

However, interest will still continue to be charged on the amount that is owed and at the end of the payment holiday period, householders will have to make up the missed payments such as by increasing their monthly payments slightly, or by adding a short extension to the term of the mortgage.

And mortgage holders are advised not to cancel direct debit payments, which is not a payment holiday and will be classed as a missed payment, without speaking to the lender first.

The FCA has also given guidance to mortgage lenders that they should ensure that borrowers taking a payment holiday will not have a negative impact on their credit file.

And people should not be at risk of losing their homes due to mortgage arrears because of the coronavirus emergency.

Mr Michna added: “This is good common sense guidance from the Financial Conduct Authority and it means that those who are struggling to keep up their mortgage payments should not have to worry about having their home repossessed.

“The golden rule for those unable to keep up their mortgage payments is to contact your lender to work out an arrangement with them during the coronavirus period.”

Citizens Advice Hartlepool can be contacted on (01429) 408401 or 0300 3309005 or email [email protected]

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