Mortgage payment holidays extended

The government has made an 11th hour extension to mortgage payment holidays – which were due to finish at the end of October.

Borrowers that haven’t taken a mortgage holiday will still be able to do so, with payments being paused for six months.

Those who already have a holiday can extend it until it reaches the six month limit.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: ‘It is good to see such decisive action taken so quickly. Many borrowers will be worrying about paying their mortgage and extending payment deferrals for a further six months will provide them with some comfort.

“However, the advice remains the same – only ask for a payment deferral if you need one. Interest will still rack up and you will have more to pay off in the long run so the option should only be utilised by those who really need it.”

The furlough scheme has also been extended by a month, while the self-employed will now receive 80% of monthly profits in November.

The changes coincide with a new lockdown, which will be in place until December 2nd.