Mortgage lenders to offer three month break in bills for coronavirus-hit customers

MORTGAGE lenders are to offer a three month break for coronavirus-hit customers.

The measures were announced by Chancellor Rishi Sunak this evening.

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He said: "Mortage lenders will offer a three-month 'mortgage holiday' for those in financial difficulty due to the outbreak".

It was part of an "unprecedented package" of government-backed loans worth £350billion for businesses to help keep them afloat during the epidemic.

The Prime Minister Boris Johnson promised  to do "whatever it takes" to help prevent an economic meltdown.

A number of banks have already confirmed packages of support for customers.

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These include Lloyds Bank, Halifax, Royal Bank of Scotland, NatWest, TSB, Virgin Money, Clydesdale Bank and Yorkshire Bank who already said they give customers who financially struggle the option to pause their mortgage payments.

Customers have also been promised for support with loan payments and the option to waive fees on fixed savings accounts.

The payment holiday won't be automatic - it will be up to lenders to decide if its right for customers on a case by case basis.

Most banks will want to speak to customers to find out the best option for them.

They must be able to prove they will be impacted by coronavirus financially, either directly, for example if they lose their job or have to self-isolate.

It will also consider customers who've been affected in-directly, such as your partner being unable to work.

Customers who think that they will need a break in paying their mortgage should contact their lender as soon as possible.

You will need to be up to date with payments and not already in arrears to qualify for the support.

If you qualify then you won't make a payment but you will still accrue interest on your mortgage.

Banks have been asked to work with credit reference agencies to make sure that taking a payment holiday won't affect your credit score.

The UK's three credit reference agencies - Equifax, Experian and TransUnion - have all confirmed that while payment holidays will be recorded on credit reports, they shouldn't impact your score.

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