Mortgage News
Help to Buy borrowers get equity loan payment holiday extension
Help to Buy homeowners who are due to begin repaying the interest on their equity loan before 31 October can request a payment holiday, the government has confirmed.
The Financial Conduct Authority (FCA) announced that borrowers who have already taken a mortgage payment holiday can extend the break for a further three months.
Furthermore, borrowers who have not suspended their mortgage commitments have until the end of October to apply for a payment freeze under the scheme.
The mortgage payment holiday extension, said the government, also applies to Help to Buy borrowers who need to freeze their current or upcoming equity loan instalments if they face financial difficulty because of the coronavirus pandemic.
The government added the guidance to its Help to Buy: Frequently Asked Questions page that can be found here.
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Once the agreed payment holiday has ended, borrowers must set up a repayment plan for the suspended equity loan interest payments.
Guidance on obtaining a refund of a new build reservation deposit, the use of desktop valuations and the process of completing a remortgage can also be found in the FAQs.