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Barclays’ mortgage rescue package includes interest-only switch option

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  • 18/03/2020
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Barclays’ mortgage rescue package includes interest-only switch option
Barclays is the latest high street bank to spell out its plans to help borrowers facing financial difficulty because of the outbreak of Covid-19.

 

Following chancellor Rishi Sunak’s announcement that mortgage lenders would offer a three month holiday on repayments, the bank has confirmed it will offer other rescue measures, as well at the 90 day break, depending on the borrowers’ needs.

The bank said it would consider switching borrowers from capital repayment to interest-only for up to 12 months.

Further measures to help borrowers include an extension of the mortgage term to lower payments, and the availability of short and long term repayment plans for missed mortgage payments.

Borrowers who think they will face financial difficulty are being told to contact the bank to speak to one of its specialist support teams to discuss their options.

A Barclays spokesperson said: “As a responsible lender, it is crucial that we offer the right support to our customers at this time.

“We have therefore decided to offer customers who are potentially facing financial difficulty, a number of options to support them through this time.”

Before the chancellor’s address to the nation yesterday evening, Mortgage Solutions reported Lloyds Banking Group had pledged not to charge borrowers fees on missed mortgage payments.

That bank, along with NatWest, Nationwide and Barclays, have all confirmed taking a payment holiday will not leave a black mark on borrowers’ credit profiles.

 

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